4 Tips about Income Tax Extensions

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California Society of Enrolled Agents

Apr 14, 2015, 06:14 ET

SACRAMENTO, Calif., April 14, 2015 /PRNewswire-USNewswire/ -- Can't file your 2014 tax return by the April 15 deadline? You can request an automatic six-month extension of time to file the tax return. But, taxpayers beware! An extension is just an extension on the time to file the return; it is not an extension on the time to pay!

What will filing an extension get me?
By filing the extension, you can avoid a late filing penalty. However, this extension is only an extension of time to file your return; it does not give you more time to pay the tax you owe. The deadline to file your tax return with an extension is October 15, 2015. If you are a U.S. citizen, resident or a member of the armed forces, whose home and main place of business or post of duty is outside the U.S. and Puerto Rico on April 15, 2015, you are allowed an automatic extension until June 15, 2015 to file your return for 2014 but must attach a statement to your return stating such.
What should I do if I haven't completed my tax return, but think I owe taxes?
File the extension with a payment. If you have overpaid, the difference will be refunded when you file your tax return. Keep in mind that you will be charged interest from April 15 on any unpaid balance. You will also be charged a late payment penalty.
What if I have my tax return completed but cannot pay the taxes due?
If your return is completed but you are unable to pay the tax due, you should not request an extension. File your return by April 15 and pay as much as you can. The IRS will send you a bill or notice for the balance due. You may also request an installment agreement by completing Form 9465, Installment Agreement Request. You will be notified if your request has been approved, or if additional information is needed. You will be charged interest and may be charged a late payment penalty on any tax not paid by April 15. If your request is granted, you must also pay a fee of $43.00.
What do I do if I receive a notice from the IRS?
If you receive a notice from IRS at any time during the year, contact your tax preparer immediately. If you did not hire one to prepare your tax return, you should contact a licensed tax professional such as an Enrolled Agent, who holds the highest credential the IRS awards. Only Enrolled Agents (EAs), CPAs and attorneys have unlimited rights to represent you before the IRS.

To find an Enrolled Agent in your area, call 800-TAXPRO-5 or visit the searchable "Find an EA Near You" directory at www.csea.org.

About the California Society of Enrolled Agents
The California Society of Enrolled Agents (CSEA) is a non-profit association of more than 3,500 federally licensed tax professionals that offers Californians guidance in choosing a tax professional to assist them with tax planning, preparation and representation. Enrolled Agents (EAs) advise and represent their clients on all matters of taxation throughout the year, not just during tax time. If you have tax questions, your Enrolled Agent can assist you in ensuring that you do not pay too much, and help you minimize your risk of an audit. Visit www.csea.org or call 1-800-TAXPRO-5 to find an Enrolled Agent near you.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Dave Shaw, EA - http://www.profnetconnect.com/daveshaw
Benita Meyers, EA - http://www.profnetconnect.com/Benita_Meyers
Raven Deerwater, EA, PhD - http://www.profnetconnect.com/ravendeerwater
Patricia Kappen, EA - http://www.profnetconnect.com/patriciakappen/go/shield/privateProfile
Lonnie Gary, EA, USTCP - http://www.profnetconnect.com/lonniegary/go/shield/privateProfile