The IRS grants a free, automatic six-month extension to file your taxes every year regardless of the reason.
With the April 17, 2018 tax return deadline looming, some investors may be panicking about filing their federal taxes in time. That’s particularly true for those awaiting their final 1099 Consolidated Tax Statement or other required documents.
If you’re among them, talk to your tax advisor. Determine if it’s in your best interest to file for a tax extension.
The IRS grants a free, automatic six-month extension to file your taxes every year regardless of the reason. Just be sure to file Form 4868 by the April 17 due date. (Check your state tax laws. Some states accept IRS federal extensions while others require a state-specific extension form.)
The caveat is that to obtain the extension, you must pay your full income tax obligation by the April deadline. Nonetheless, filing for an extension can offer significant benefits.