While procrastination remains the main reason why people need to file tax extensions, the unstable economy also holds some blame. Those who are compelled to change jobs several times within the tax year may have trouble obtaining tax documents from all their employers. Employees of companies that have gone bankrupt may experience more complexities when they try to file their tax returns. Additionally, people who have found new jobs or become unemployed recently have to deal with unfamiliar situations, and they may not know exactly what they need to do when tax time comes around.
Whether you fail to complete your tax return on time because of procrastination or other reasons, you can file a tax extension to postpone the deadline by six months. By doing so, you can avoid getting late-filing penalties from the IRS. However, the extension only allows you to submit the paperwork at a later date. If you owe taxes, you have to come up with an estimate, file an extension, and make payment by the due date. Interest will be charged and penalties may be given if you do not pay your taxes on time. You have to make sure that your estimate of the amount owed is accurate, because the IRS may reject your request for tax extension and hit you with a late-filing penalty if it thinks that the estimate is unreasonable.
There are two ways by which you can file a tax extension.
You can do it by mailing your extension request to the IRS or e-filing. More and more people are choosing to e-file their requests for tax extension, simply because it is easier and more convenient. The best way to e-file an extension is to use TurboTax Easy Extension. This software is specially developed to make the task of filing tax extension as easy and effective as possible. Other than e-filing tax extension, it can also inform you whether or not your request for extension has been approved, make tax payments directly from your bank account, print a copy of the tax extension you submitted, and access forms that are needed for filing state extensions by mail.
Filing a tax extension with TurboTax Easy Extension can be done via the Internet or a mobile device. The first thing you need to do is log in to TurboTax Online. If you do not have a TurboTax account, you should sign up for one. After logging in, click the “Federal Taxes” tab and select “Other Tax Situations”. Scroll down until you reach the “Other Tax Forms” section. Choose “File an Extension” by clicking the “Start” button.
After that, you will be asked to confirm whether or not you want to apply for a tax extension, and you have to click “Yes” to proceed. Then, follow the instructions that appear on the screen. If you wish to file a state tax extension, you can select “Start State Extension Now” to get forms for filing by mail. State extension forms are also available at the website of your state agency.
Bill Holtz has written extensively about TurboTax Online tax filing. You can visit http://www.easyincometaxfilingonline.com/ to file your taxes with TurboTax, or visit his facebook page find more articles. http://www.facebook.com/freetax2012
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