Frequently Asked Questions
Answers and Information
Read the questions and answers below.
Does everyone qualify for a tax extension?
Generally yes, most personal and business extensions will be accepted. The IRS does not require you to submit an explanation of why you are filing a tax extension. The most common reason for receiving a rejected extension is due to incorrect information.
What information is needed to file for a tax extension?
Our comprehensive system will guide you through the entire tax extension process. You will be asked questions, and the answer you provide will generate all IRS forms required to complete your extension. You will then print your form, and mail it to the IRS.
Should I file a tax extension as a precautionary method?
Generally yes, if you are unsure that your taxes will be prepared on time, then filing a tax extension would be your best choice. In the event, you were able to file your taxes on time, the IRS will ignore the extension upon receiving the return.
Can I check the status of my tax extension?
Once you mail in your tax extension form to the IRS you are automatically granted the tax extension. The IRS will only notify you via mail if your tax return was rejected for any reason. The most common reason for rejection is incorrect information on your tax extension form.
Do federal tax extensions automatically extend state income taxes?
Many states will automatically award a state tax extension when your approved Federal tax extension is filed with the IRS. However, there are a few states that require a separate extension be filed in addition. Check your state tax agency for details.
Do I need to mail my extension form to the IRS by the due date?
Yes, for your extension to be accepted by the IRS, you must postmark your extension form by the due date. The due dates for the forms are clearly marked on the top of the order form page.
Should I mail my tax extension to the IRS via Certified Mail or Priority Mail?
Yes, you need to have a record of the date you mailed your tax extension to the IRS. Both certified mail and priority mail will give you a record of the date the extension was mailed. This will be your proof your extension was mailed on time in the event the IRS requests this information.
Will my audit rates increase if I file a tax extension?
Filing a tax extension does not increase the chances of an audit.
Do I file an extension for both my business and myself personally?
If you report your business activities on your personal tax return, then you can file a personal tax extension, which extends both your personal and business deadlines. However, if you report your business on a separate tax return, then you will need to file both a personal and business extension.
Will I get a refund if my tax extension is not accepted?
We fully guarantee that you will receive a tax extension provided that you have provided your information correctly and mail the forms by the dues dates to the IRS. If you are not approved by the IRS, and if this was due to a fault of our system, we will fully refund your purchase.
Can I change my information once I mail my tax extension to the IRS?
No, information that is submitted to the IRS will be reviewed based on the tax forms you create. The IRS will not allow you to change this information once accepted. You would have to mail another corrected tax extension if you discover an error.
My tax extension was rejected by the IRS. What should I do now?
In the event that your tax extension was rejected by the IRS, you will receive a letter stating the rejection reason. You should respond to the IRS via telephone or mail to resolve any rejection issues. The IRS phone number is 1-800-829-1040.
What could cause my tax extension to get rejected by the IRS?
When you file a tax extension the IRS considers it “automatic.” This means you should be approved for an extension if your information is submitted in accordance with time and accuracy.
Rejections tend to occur when personal information does not match the IRS records.
Do I need to make a tax payment when I file a tax extension?
No, you do not have to make a payment, but understand that a tax extension only postpones your time to file a return, not your time to pay your estimated taxes. Include an estimated tax payment with your extension by using a tax calculator, up-to-date personal or business records, or base it on your previous year tax return if nothing has changed.
Note: You and or your business will not be forced to make a tax payment when you file your tax extension. But keep in mind that if you have a tax balance due when you file, penalties, late fees, and interest charges may be assessed. The assessment on unpaid taxes will begin to accumulate after the original tax return due date, regardless if you filed an extension. In regard to a business tax extension, the number of owners/shareholders will also impact the assessed fees.
How do I pay estimated taxes when I file a tax extension?
If you choose to make an optional payment, you will mail a check or money order made to the “United State Treasury” and mail it to the IRS with your tax extension form. Do not mail cash to the IRS.
What if I cannot afford my estimated tax payment the day I filed for a tax extension?
As long as you file your federal tax extension, and it is approved, you will avoid the late filing penalty. However, when it comes to assessed fees, penalties, and interest on outstanding taxes, you will have to account for them when you file your tax return. If you are still unable to make your tax payment in full, ask the IRS for a payment plan.
Should I still file a tax extension if I cannot afford to make an estimated tax payment?
Yes, you should file the extension because it will help you avoid paying the late filing penalties.
What are late payment penalties for not paying estimated taxes at the time of filing an extension?
When you choose to not pay estimated taxes at the time of filing an extension, the late payment penalty is usually 0.5% per month of the unpaid tax. The assessment will be retroactive and begin on the original tax deadline. The late payment penalty generally has a maximum of 25%. Regarding a business tax extension, the number of owners/shareholders will also impact the assessed fees.
What are the interest penalties for unpaid taxes?
The IRS charges interest on unpaid Federal taxes regardless if you have filed a tax extension. The interest rate which is determined on a quarterly basis, is the current Federal short-term rate plus an additional 3%. Interest may compound daily if the outstanding tax balance remains unpaid.