Writing a personal finance blog gives me the unique opportunity to share relevant and useful personal finance tips with you.  Today’s subject isn’t nearly as fun as learning about One of The Smartest Retirement Tools Ever Created –  But by the time you finish reading this short post,  I will show you how to file a tax extension and where to locate the IRS  form to do so.  First, I want to dispel a couple of myths regarding the “dreaded” IRS.

Myth 1 – The IRS is out to get you. As, you know The Wise Buck is not a Political Blog Full of Hot Air This isn’t the post to discuss whether the IRS should exist; we’ll let the political blogs take care of that discussion.  In my experience (especially over the last 3 years) all of the times I have simply picked up the phone and called the IRS, they have been extremely helpful and patient in providing answers to my tax questions.  And,  it didn’t cost me anything.  Totally free.   The irony is that some of us complain about the IRS (even pay for them) but never see or use them as a resource.   It’s okay to be skeptical; I’d even encourage it.  At least learn how to use the IRS to help you when you can.

Myth 2 –  It’s Just as Easy to Wait to The Last Minute; So, I won’t do anything – I remember the first time I received a 1099, a W-2, and about 5 other tax forms for 1 year.  I took all the tax forms that came in the mail after new year and shoved them into an envelope to be dealt with later.  All this did for me was cause a lot of unnecessary stress.  What was really happening was that because of my procrastination, I was causing myself unnecessary stress.  This is where much of Myth 1 comes from; its just easier to blame the IRS.

The lesson I learned was to take responsibility and not procrastinate.  Also, I learned to not fear the IRS but to fully utilize them as a resource.  After all, isn’t that what I am paying them for?   As promised, lets now learn how to file a tax extension and where to find the correct IRS form to do so.

As April 15th comes closer, there may be any number of reasons you aren’t ready to file your tax return.  The first thing you need to realize is that anyone can file for an extension of six months.  This gives you until October 15th to file your tax return.  The important thing to remember is that you still need to make an estimated payment, by April 15th, on what you believe you will ultimately owe. For any portion of the income tax you don’t pay by April 15th, the IRS will begin to charge you interest, beginning on April 16th.    Also, if you underpay more than 10% with your estimated return, there are additional fees.  So, if you intentionally skimp, you will pay later.

Filing for an extension is pretty simple and can be done electronically.   All you need to do is submit the 1 page Form 4868 by April 15th, 2010 with your estimated tax payment.  Again, remember, you still need to file your estimated tax payment by April 15th, 2010.  When it comes time to file your return, you can do that electronically as well.

Form 4868 – Tax Extension

Here is the link to the Downloadable pdf Form 4868 to file for a Tax Extension

IRS Contact Info

Here is the How To Contact the IRS link with the phone numbers in case you have a question.  (Note:  From my experience, the best time to call  is 7AM or 9PM.)

A Few Closing Thoughts

Instead of filing your return with missing documents, and then having to amend your return later, it is usually easier to get an extension.  Then you have plenty of time to get all the necessary documents together and complete your return accurately.

Remember, if you’re self employed and in the process of collecting all the relevant tax documents, the extension may be the best thing for you to consider.  You may also have multiple streams or alternative streams of income and you need extra time to reconcile those accounts.  This is one of the main reasons the filing extension is available.  The IRS knows this, so just learn to see them as a resource versus something to fear.

Filing an extension now is much better than filing an amended return later and crossing your fingers.  Taking your time, learning this simple process and doing things accurately, will also give you peace of mind as the years go by.  You won’t have to fear the next time you see the one of those IRS envelops coming through the mail.

Was this post helpful?  If so, please let me know by posting a comment.  Also, share any related ideas or stories you have.  Remember, I am not a tax professional.  While I believe all of the above information to be accurate and true, ultimately you should consult the IRS or your tax professional to verify anything you’re unsure about.

Related posts:

1. 2010 Tax Deadlines
2. Last Minute Checklist Before Income Tax Filing Deadline