Business & Financial Solutions is a full solutions accounting firm, open year-round. We prepare individual income tax returns, and well as all business tax returns. And we provide a broad range of accounting and tax services to meet other specific needs of our clients.
Further, our services include tax preparation for individuals, businesses and non-profit organization. In performing services for our clients we will file your Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Whether an existing and new client, we can prepare this extension at no cost.
An extension is a way to ask the Internal Revenue Service for more time to file a tax return. The deadline to file your 2013 returns is April 15th, except when April 15th falls on the weekend or a federal holiday. In this event, the deadline will be on the following business date. Form 4868 will extend the deadline by six months for an individual income tax return. With an extension, your deadline to file is extended to October 15th. An extension of time to file is not an extension of time to pay. Tax payments are still due by the deadline. Therefore, it is wise to send payment for what you expect you will owe in taxes.
Incidentally, the IRS imposes a late filing penalty for those individuals filing late, and did not file the extension. Of course there is an exception if the taxpayer actually has a refund. But the late filing penalty applies to any portion of tax that is unpaid as of the payment due date. And it also applies to any tax return filed after the filing due date. The failure-to-file penalty is calculated based on the time from the deadline of your tax return (including extensions) to the date you actually file your tax return.
The penalty is 5% for each month or part of a month that the tax return is late, up to a maximum penalty of 25%. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. The penalty can be waived at the discretion of the IRS if taxpayer can show that the return was filed late due to a reasonable cause. IRS Form 843 should be completed and filed for the Request for Abatement of Penalty and Interest.