Many people don’t know that they can file for an extension on their tax returns and will still be able to get their tax refund back. They are too afraid that asking for an extension will make the chances of getting the refund so much smaller. There is a way that you can ask for an extension without you getting into trouble. Here is more information about filing for an extension on your tax return without compromising on your refund: click here for related information.
Know the difference between asking for extension to file and to pay
People think that they can file for an extension to pay in the tax money that they owe the IRS. This isn’t true. You can ask for an extension to file your tax return, but it has nothing to do with paying in the money that you owe them. for more details, visit : http://money.cnn.com/2016/08/12/pf/taxes/hillary-clinton-tax-return/
Many are making this mistake, and the results are that they need to pay not only the money that they owe, but also the penalty fee that are payable with late payments. Don’t mistake an extension to file with an extension to pay. There is a huge difference.
Will you get penalized when asking for an extension on your return?
Most people don’t ask for an extension when they realize that they are not going to make the deadline for the tax return forms. They are risking paying penalties rather than asking for an extension. The reason is because they are afraid that they going to lose their tax refund.
There is no way that you can lose your tax refund, when you are filing for an extension. But then you need to have a very good reason why you should want to have an extension. To say that you forgot about the tax return isn’t going to be the right reason.
Tips when asking for an extension
When you are going to ask for an extension, you shouldn’t wait till after the deadline before you ask them for one, because then you are going to be late, and penalties will be paid. And, the penalty fees will be deducted from your tax refund. So, make sure that you are going to ask in advance for the extension. You will have a much higher chance of getting the extension granted if you ask beforehand.
You should have a very good reason for asking an extension. The IRS doesn’t allow extensions for just any reason. There should be a valid reason for it. For example, you are not in the country during tax season, and you can file your tax return if you are in another country. The IRS normally grants an extension of the tax return when you’re not in the country and able to prove it.
It is possible to ask for an extension on filing your tax return. However, you should make sure that you know that you don’t ask for permission to be late on the payment that you need to make if you owe the IRS money. You will not lose your tax refund, but then you need to have a valid reason for asking for the extension.