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Debt Settlement & Income Taxes -- What You Need to Know
Debt settlement has become a popular approach to resolving problem debts without having to file bankruptcy. With this approach, creditors agree to accept a portion of what you owe (usually around 50% or less) to settle the account, and the...
How to Save Taxes with an S Corporation
Ever wondered why so many small businesses—more than 3,000,000 at last count—operate as an S corporation? Simple. An S corporation saves business owners big taxes in three separate ways:
First, as compared to regular corporations (sometimes...
Life, Liberty and the Pursuit of Higher Taxes
On Thursday, June 23rd, 2005 the Supreme Court of these United States declared war on the people. On that dark day, five black robed tyrants, issued a decision that rewrote our unalienable rights as Americans; something that the term “unalienable”...
Taxes as a Competitive Advantage in the Global Economy
Building an ownership society in a tax competitive world.
Like many fellow citizens of this great country, I listened to the President¡¦s Inaugural Address on January 20th. It was interesting, but it just flowed over me with nothing really...
Your mid-year checkup: Get savvy about lowering your taxes
Are you still owing the IRS in taxes every year? Not a great situation to be in, is it? But there is still hope for this year. You have almost six months, in some cases a little longer, to make certain you owe less tax, and possibly no tax, next...
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Getting A Second Extension to File 2004 Taxes
Millions of people file tax return extensions every year. The tax filing deadlines can rush up on your quickly. Fortunately, filing an extension isn’t particularly difficult. For individuals, there are two available extensions.
Automatic Extension
What do you do if April 15th is approaching and you simply can’t get your taxes done? The IRS allows you to file a request for a four-month extension to file your tax returns. Simply file form 4868 and you will automatically be given until August 15th to get your return in.
Second Extension
What do you do if August 15th is quickly approaching and you still can’t get your returns together? You can file an additional request for an extension to file your tax returns. Unfortunately, the IRS isn’t going to automatically grant your request. Instead, you have to show the following:
1. The reason for requesting the extension,
2. The particular tax return for which the extension of time to file is desired,
3. The tax year to which the extension applies,
4. The
length of time needed for the extension, and
5. Whether another extension of time to file has already been granted for this tax year.
If you can provide credible information, the IRS will grant you an additional extension for two months. To request the extension, you must file form 2688.
Failing To File
Failing to file a tax return or application for extension is a bad move. Penalties can be as high as 5% for each month your return is late. The penalty does max out at 25% of the tax due, but your risk of an audit or having your return red flagged increases dramatically. Filing a tax return extension is fairly simple, so you should never have this problem.
About the author:
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.
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