After Filing: What to do After you Filed your Tax Extension
April 27, 2017 at midnight
There are many reasons to file for a tax extension. Sometimes, you're jumping through hoops to get information from someone about your income. Maybe you need an extension because of a technicality that you missed when you first filed your return. Other times, life just gets away from you because of situations outside of your control. Whatever it is, having to file for an extension can be stressful if you've never done it before. It can make you feel like you've done something wrong before you've even done anything. But don't worry. This article will help get you where you need to be in five fast, simple steps.
1. Status Check
With a service as expansive as the IRS, many technicalities can get in the way of moving forward
with any kind of communication, including an extension. Once you file, you'll want to keep track of the status of your request. Extensions aren't often rejected but something as simple as a misspelling or an outdated piece of information can hold you back. So be diligent and keep up with the filing. If you filed online, you should know if it was accepted or rejected within two days. Otherwise, the experts at Hacker Accounting say you need to call the IRS to keep up with it.
2. State Extension
Some states require you to file a separate extension for state returns. If your state is one of those, you'll want to make sure that you're following both extension requests. Staying on top of this will save you heaps of grief in the future.
3. Pay what you Owe
A tax extension will only provide you more time to file your returns. It has no effect on the deadline for paying owed taxes. You will still have to pay any penalties that accumulate if you're overdue. Turbo Tax has an easy- to-follow breakdown of the applicable penalties and how hard they'll hit if you wait.
4. In case of Rejection
The IRS will not take extension requests after April 18th, 2017, including requests denied on the 18th. If your extension is rejected, take a deep breath. E-file your taxes as soon as possible to be sure you make the deadline and start making plans for paying what you owe, even if you can't afford to pay the lump sum right now. It's important to make sure that you keep your status as healthy and penalty-free as possible.
5. File your Return
If your extension was accepted, you have 6 months to finish filing your return. Don't wait until you're racing to beat the clock again in October. Take the time as soon as you can to finish filing and get it out of the way. Extensions are for your benefit, but only if you take proper advantage of them. If you stay on top of your extension from start to finish, there will never be any reason to stress.