As tax day approaches, some taxpayers may find that they need more time to prepare their returns. Fortunately, there is an option to file for a tax extension, which can provide an additional six months to file. Taxpayers who are unable to file by the deadline of April 17th, 2023 can request an extension by filing Form 4868, which can be found on the Internal Revenue Service (IRS) website.
By filing for an extension, taxpayers can avoid late-filing penalties, which can add up quickly. However, it’s important to note that an extension only provides additional time to file a return, not to pay taxes owed. Taxpayers who owe taxes must still pay by the April 17th deadline to avoid late-payment penalties and interest.
It’s also worth mentioning that while an extension can provide more time to prepare a return, it does not necessarily mean that more time will be granted for certain tax-related actions. For example, an extension does not provide more time to make contributions to a traditional IRA or Roth IRA for the previous tax year.
Overall, filing for an extension can be a helpful tool for taxpayers who need more time to prepare their returns. However, it’s important to understand the limitations of an extension and to ensure that any taxes owed are paid by the April 17th deadline.