The Tax Extension Deadline Is Approaching!
September 29, 2016 : Monica Welsh – The Tax Institute
If Tax Day came too quickly this year and you were unable to finish your return on time, hopefully you thought far enough ahead to file an extension using Form 4868. The form gives you an automatic six-month extension for filing your tax return.
But, the six-month deadline is quickly approaching, and you might need some quick tips on finishing your return.
Form 4868 Does Not Extend The Due Date Of Your Tax Liability
If you filed for an extension though Form 4868, it extended your time to file, it did not extend the due date of your actual tax liability. If you owed tax on your 2015 return and you had not previously made estimated tax payments during the year or had tax withheld from your pay, it would have been recommended that you pay your tax liability with your extension (if you owe). If you did not pay at least 90% of your 2015 tax liability by the regular filing deadline, you will be required to pay interest and penalties on the balance due even if you filed for an extension on time.
Tax Extension Filing Due Date
The exact due date for extended 2015 returns is October 17, 2016. The automatic extension is six months, which would normally mean October 16, since the original filing date for this year was April 18. However, October 16 is a Sunday this year, so the due date moves to the next weekday; Monday, October 17. The mailbox rule requires that you have your return postmarked and sent by October 17 in order to make the filing deadline.
Because you filed an extension, your tax return might be a little more complicated than most or you are a little bit of a procrastinator. Either way, it is a good idea to start collecting the items you need to prepare your taxes as soon as possible.
Actions for Extended Filers
You will not be able to extend your tax filing date beyond the October 17 deadline, so if you still owe for 2015 this is your last chance to complete your return without significant interest and penalties. Additionally, there are a variety of elections that must be made on a timely filed return (including extensions). So, not only will you be assessed interest and penalties on a return filed after the extension date, you may miss out on the possibility to make an election that could be beneficial to your tax position.
Keeping current with your tax filings is extremely important, so don’t let this final tax extension deadline for 2015 returns pass you by!