There are three ways to request a tax filing extension. You need to fill out IRS Form 4868, Application For Automatic Extension of Time to File U.S. Individual Tax Return. You can file this form electronically or by mail.

Electronically Request a 2009 Tax Filing Extension

Using tax software or IRS e-file services, you can fill out Form 4868 to request additional time to prepare your tax return. You will receive an electronic acknowledgment when you complete and file Form 4868 electronically – be sure to keep the acknowledgment with your records. If you think you will owe taxes when you do file your return, you should estimate the amount due based on the information from Form 4868, and make a payment when filing for the extension. Payments can be made with a check, money order, automatic bank debit, by phone, or with a debit or credit card. There are service and convenience fees charged for various payment methods, so compare your options to find your least expensive option for making the payment. For information about how to e-file, please visit www.irs.gov or a local tax professional.

Request a 2009 Tax Filing Extension by Mail

If you would like to request an extension by mail rather than electronically, you’ll need to print and fill out Form 4868 (http://www.irs.gov/pub/irs-pdf/f4868.pdf ). Once you fill out the form with all the required information, you can mail it to the same place where you will be filing your tax return once it is completed.

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1. When You Would File A Late Tax Return or Request a Tax Extension
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3. File Unfiled Taxes By 10/15 or Face More State and IRS Penalties

April 15th is the normal deadline to get your income taxes filed with the IRS. You can always request  an automatic 6-month extension, which gives you until October 15th to file your taxes using form 4868.  Be aware, that if you elect to to extend your filing deadline, it is not an extension to pay. In fact, if you push off your filing the IRS will charge you interest for an underpayment. If your underpayment is greater than 10%, you will incur a Failure to Pay Penalty which is .5% on the amount owed. The worst thing you can do is file your taxes late without filing for an extension first.

But why would you want to file your tax return late? Well there are many good reasons for doing so with some being more obvious than others.

• You Simply Cannot File By April 15th Due to Unforeseen Events – This may be a death in the family, a natural disaster, sickness in the family, incarceration, your records were stolen, and so on.  Remember, the IRS does not need a reason for you to request a filing extension–the extension is automatic.
• You Plan On Purchasing A House & Realizing the Tax Credit for 2009 – When Congress extended the home-buyer tax credit last year it had a few notable provisions.  As long as you purchase a home on or before April 30th, 2010 you can qualify for the tax credit. Furthermore, if you can secure a contract before May 1st, 2010 with a closing before July 1st, you can also qualify for the tax credit as well. Therefore, if you plan on purchasing a home and you are not sure if the process will be completed by April 15th, it makes sense to file an extension. Alternatively, you can always claim the tax credit on your taxes for 2010.
• You Converted a Traditional IRA to a Roth and It Lost Value – If you converted a traditional IRA to a Roth IRA in 2009 you would be expected to pay taxes on that conversion since a Traditional IRA is funded with pre-tax dollars.  However, if you Roth lost money after the conversion it makes no sense to pay taxes on money that is not there anymore. Reversing a Roth IRA back to a traditional IRA is called a “Recharacterization.” The deadline for this reversal is October 15th of the year after the conversion to prevent tax liability. Therefore, a tax extension will allow you to lower your tax liabilities if you plan on reversing a Traditional to Roth conversion. If you are doing this recharacterization you will need to submit proper forms and documentation to your Roth IRA holder. It is best to speak with a tax professional here as well when filling out your 1040 in order to make sure you follow procedure in showing the IRS that you converted it back.

Realize with points 2, and 3, you can always amend a tax return if you have already filed by utilizing Form 1040X. The downside to filing an amended tax return is not only is it more paperwork and work then you need, but amended tax returns typically have a higher probability of getting audited.  Tax returns can be amended typically 3 years after the due date of the original tax return.

Related posts:

1. How to File for a 2009 Tax Filing Extension
2. File Unfiled Taxes By 10/15 or Face More State and IRS Penalties
3. File Late Tax Returns to Take Control of Your Back Taxes

One important thing to note is that the tax filing servers for 2008 go offline after October 15^th in order to get ready for the next year’s tax filings, so you will need to make sure you mail in your tax return to the correct address after doing the filing instead of e-filing.

There will only be a penalty charged if you owe taxes. If you are due a refund, you will not be fined. There will be 3 different types of penalties that can add up to quite a bit. There are 2 penalties you will receive and will also be charged interest on the amount owed. These penalties can add up to 50% of the taxes owed. The sooner you file the better because the amount increases each month.

Even if you are due a refund it is important to file your taxes because the IRS will come after eventually and if you don’t file soon you will not be able to receive your refund.

Related posts:

1. IRS Gives Tax Evaders Till October 15th To Fess Up
2. What If I Didn’t File My Taxes by April 15th?
3. How to File for a 2009 Tax Filing Extension