With just a few days left until the Tuesday tax-filing deadline, Arkansans who won’t be able to prepare and file their 2011 federal income tax returns by the deadline can get an automatic, six-month tax-filing extension by filing Form 4868.
Filing Form 4868 by Tuesday automatically results in filers having until Oct. 15, 2012, to prepare and file their federal income tax returns. It also prevents the assessment of a late-filing penalty of five percent per month on any unpaid balance.
“The easiest way to file a Form 4868 is to use IRS Free File,” David Stell, IRS spokesman, said.
All taxpayers, regardless of 2011 income, can use Free File to electronically file the extension form. Free File is accessed only online through the IRS Website, irs.gov.
Stell says it’s important to note that filing Form 4868 provides an extension of time to file and relief from a late-filing penalty, but it is not an extension of time to pay.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“If you expect to have a balance due when you eventually file your tax return, you may want to make a payment with the Form 4868 to cut down a late-payment penalty and interest that will still apply. But a Form 4868 filing is still valid, even if filed without a payment,” he said.
This year, about 91,000 Arkansans are expected to file Forms 4868 by Tuesday.
For some workers who’ve experienced unemployment and who will have a balance due when they file their tax returns after Tuesday, the normal late-payment penalty of one-half percent per month can be forgiven.
The IRS’s “Fresh Start” program was expanded this year to help people who have been unemployed during 2011 or 2012 for 30 consecutive days or more. This penalty relief is also available to self-employed people who experienced a 25 percent or greater reduction in business income in 2011 due to the economy. More information about Fresh Start can be found on the IRS Website, irs.gov.
For people working on their taxes who expect to file their tax returns on time, instead of requesting extensions, using tax software and e-filing electronically helps avoid common mistakes while making tax return preparation easier.
“Filing your return electronically is a great choice because it’s fast, easy, safe and secure,” Stell said. “In fact, many people can e-file using brand name tax software for free through the same Free File system that can be used to file an extension request.”
Details visit online at irs.gov.