A 60-second read by the Baron Team: With the filing due date fast approaching, you are probably in the process of collecting all of your tax-related documents from the past year. Tax returns must be submitted by April 18th this year. If you realize that you are going to need more time to compile information for your tax return or haven’t received all of the documents you need, it will be in your best interest to file a tax extension. This will extend the due date up until October 16, 2023.
How to file a Paper Tax Extension:
To file an extension, you are going to need to fill out Form 4868 [Application for Automatic Extension of Time to File U.S. Individual Income Tax Return]. You can download the form and instructions from the IRS website.
With the form, you also need to send in at least 90% of your estimated tax liability due for the year. To pay by check, mail the form with the check together. Make the check out to United States Treasury. Write your Social Security number, daytime phone number and “2022 Form 4868” on your check. This way, they know that you are sending the check as part of your extension.
When mailing in the tax extension, it is highly recommended that you send it via certified mail or another method that provides you with a tracking number. The envelope needs to be postmarked by April 18th. Check the instructions portion of Form 4868 for the correct mailing address (it varies according to what state you reside in).
To Prevent any Penalties:
- Carefully read all instructions and follow all directions on Form 4868.
- Correctly estimate your tax liability for the year and send in at least 90% of the amount due.
- It is possible to file your extension online. See the IRS website for more details.
- If you ever feel unsure or concerned about the process, consult a Tax Professional to assist you.
For any other questions, contact the Baron Financial Group Team.
Disclosure: This is a general communication being provided for informational purposes only. This material is not intended to be relied upon as a forecast, research, tax or investment advice. Please consult your financial planning and tax professional for personal advice.