How to File for an IRS Extension of Time to File Your Tax Return

The typical tax deadline is April 15, 2009. With an extension you can extend your due date to October 15th, 2009. One important thing to note about an extension is that it is ONLY an extension to file not to pay. If you do not pay the IRS by April 15th, penalties and interest will begin adding onto your balance that is due.

If you know you will not be able to file or pay by April 15th it is a good idea to submit for an extension because each month that taxes are unfiled, there will be a 5% penalty added onto the taxes owed, but there will only .5% penalty for failure to pay taxes.
How to File for an Extension

1) If you know you will be owing taxes for 2008 you will need to get an estimate of how much you owe. It is best to do a rough draft of a tax return to get the basic amount you owe because you will need to send a check in with your extension form.

2) Fill out IRS Form 4868. This is the IRS form for an extension. You will need to have this filled out and post marked by April 15th with an check for an estimate of taxes owed. The IRS also allows individuals to pay with their credit cards .
Tax Extension Services

There are also several companies that do offer streamlined service for filing for an extension. FileLater.com allows individuals to file for an extension in about 5 minutes with no complicated IRS forms to fill out. This service costs less than $20 for individuals and Less than $30 for businesses.

By Backtaxeshelp.com