The good news for the 2008 tax season, however, is that the IRS has guaranteed to accept every extension filed here. The bad news is that you still have to do paperwork to avoid late filing penalties, and if the extension is done incorrectly, you may be subject to more penalties.
Longer effort rendered for filing but a better reason not to make mistakes or blunder. However, you may have to be careful of your intention or your current socio-economic status as these may cause cancellation of your extension
Tips to ensure a smooth income tax extension.
- Make sure that when you file for an extension, that your estimate for initial assessment is reasonable and well explained.
- IRS is keen and always suspicious of intentions of income tax extension requests for possible manipulation or exploitation of intended tax returns throughout the given 6-month grace period.
- While filing for an extension doesn't require you to make a payment of your estimated taxes, the IRS will charge interest on what is owed if it isn't paid by the normal due date.
- It is essential to understand that filing a 1040 tax extension helps avoid late filing penalties only. It does not put an owed payment on hold, and you will need to estimate that payment.
- The filing of federal tax returns for 2008 is due on April 15, 2009. Make sure that you file for an extension a little early than that date to avoid technicalities and cancellation of your request for an income tax extension.