What Are Tax Extensions & Why Do You Need Them?
What are the most common reasons for not filing an IRS Tax extension?
– IRS may raise a red flag when you extend, increasing your audit risk
– I’m always late filing my tax returns
– I may be late in October as well if I file an extension.
– Everything I need for my taxes is in order, I just need to complete the tax forms.
– If I won’t use the extension, why file it?
No matter what the reasons are, they don’t matter, your tax return must either be filed on time or an extension must be sought.
Extending a deadline will postpone both the filing and payment deadlines. This is often misunderstood. The extensions will only extend the filing deadline, not the payment deadline.
The tax deadline for US citizens and residents residing inside the United States is April 15th, 2022. Filing a Form 4868, if you are unable to file by the deadline, will extend your tax return for six months until October 15th, 2022. To avoid late payment penalties, taxes must be paid by April 15th.
US Expats living in the UK have until June 15th, 2022, to file their taxes. US citizens living abroad receive an automatic extension of their tax deadline by two months. Filing Form 4868 can extend your deadline to October 15th, 2022, if you are unable to file your tax return by June 15th. To avoid any late-payment penalties, tax dues should be paid by April 15th.
It’s important to keep on top of the ever-changing tax laws, requirements and obligations, especially if you’re an expat who lives abroad in London, UK or elsewhere. Our experience allows us to provide effective solutions for almost any situation. We continue to investigate ways to help reduce your tax burden because at the end of the day, it all comes down to one thing; you’re entitled to keep what is yours! With our unique expertise in U.S. expat taxes, Xerxes Associates LLP shall ensure your interests are served correctly.
Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.