There are many reasons why people file for their income taxes to be extended. The good part about filing for an extension with the IRS is that your actually reason or circumstance is not required. The process with a federal tax extension is fairly easy as the internet is a great resource for all the required information needed for your extension. With income taxes extended you get 6 more months to actually file your personal tax return. In this blog we are going to discuss three reasons to file a federal tax extension. The first reason to file an extension is if you are a new business owner. New business owners are new to the game and sometimes just don’t know where to begin in terms of business taxes. Some may be used to filing the normal individual tax filing. Another reason to file a tax extension is marriage. It can bring up many new tax laws most may not be aware of. Getting married changes all financials especially on a tax return so some file an extension ensuring everything is squared away. Last but not least the third reason to file for a tax return extension an emergency and have to leave the country. Being out of the country can mean that you may miss the filing deadline so filing an extension just makes sense and saves you money.
First there are many online tools that you can use to prepare your business taxes as well as step by step tutorials in order to file an extension. One key component that a business owner must understand when filing a tax return is that you must be able to estimate how much you owe by the given date. This applies only if you owe anything at all. The correct form for business taxes to be extended is going to be Form 7004. However, keep in mind that each business is different. C-corporations, S-corporations and partnerships all have different dates that you may apply for an extension. There are a number of tax forms and tax help online to help your tax returns be turned in on time.
For marriages and taxes there are many laws that must be reviewed. The filing status for marriages will and same-sex marriage tax laws have been changing and is a great reason to file a tax extension. Reading up on the latest legal decisions for filing a tax extension if you just got married is worth researching and can be time consuming.
Last but not least if you have a hard time finishing something in one shot filing an extension is best especially if you know that you will be out of the country. If you know that you will be out of the country and you will not be returning until after the tax deadline filing for an extension is extremely beneficial. You may be eligible for an automatic six month extension. There are many filing options, as well as timing deadlines that needs to be met. Also, when to file and pay is going to be information supplied to you when filing for an extension.