Need More Time For Your Taxes? File an Extension!

This year, tax returns are due on April 18^th.  That means if you don’t electronically file or mail in your tax return by April 18^th, the IRS could charge you a failure-to-file penalty, which can be expensive and adds up fast! 

There are lots of free places to get your taxes done ( https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers ), but it’s getting so close to the deadline that those places might not be able to do your taxes for you by April 18^th!

If you request an extension by April 18^th, you’ll have until October 15^th to file your 2022 tax return. This means if you request the extension, you won’t get charged the failure-to-file penalty if you get your return filed by October 15^th!

You can request an extension by completing and mailing IRS Form 4868. We always recommend when mailing anything to the IRS to make a copy and mail it by certified mail so that you have a tracking number and proof of the date you mailed it.  

You can also request an extension electronically. Here is the IRS webpage that has instructions for electronic extension requests and also a link to Form 4868: https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return

The IRS’s failure-to-file penalty is generally 5% per month of the tax you owe, up to a maximum of 25%. If your return is over sixty days late, the minimum failure-to-file penalty is $435 or 100% of the tax required to be shown on the return, whichever is less. 

You should be aware, however, that filing a request for an extension does not extend the time you have to pay the tax, and it doesn’t stop interest from adding up on unpaid tax. Taxes are required to be paid by April 18^th this year, and if you can’t pay everything you owe, the IRS charges a failure-to-pay penalty of half a percent of the unpaid tax for each month that it remains unpaid (again, for a maximum of 25%). Even if you know you can’t pay what you owe, it can save you a lot of failure-to-file penalties by filing the extension request by April 18^th.

You can also request an extension to file your PA State return at https://www.revenue.pa.gov/TaxTypes/PIT/Pages/Requesting%20and%20Extension.aspx and the City of Philadelphia generally grants an extension to those who have been granted an extension to file their federal income tax returns.

Need more tax help? Visit https://philalegal.org/get-legal-help to apply!