Tax Filing Extension: A Lifesaver for Small Business Owners and Individuals
As the tax deadline approaches each year, many individuals and small business owners find themselves rushing to organize financial documents and meet IRS deadlines. If you’re not fully prepared, don’t panic. A Tax Filing Extension could be your solution—and this blog will explain exactly how and when to file it.
What is a Tax Filing Extension?
A Tax Filing Extension gives taxpayers extra time to file their income tax returns—but it’s crucial to remember that this extension applies to filing, not paying. You must still estimate and pay any taxes due by April 15, 2025, to avoid interest and penalties.
According to a recent IRS press release, taxpayers who request an extension by the due date will have until October 15, 2025, to file their returns.
How to Request a Tax Filing Extension
The IRS offers three simple methods for requesting a Tax Filing Extension:
- Use IRS Free File
Everyone, regardless of income level, can use IRS Free File to request a tax extension at no cost. Estimate your tax liability and submit by the deadline to receive an extension.
- Pay Online and Select Extension Option
Make an online payment for the taxes you owe and select “extension” as the reason for payment. The IRS will confirm your Tax Filing Extension with a confirmation number—no additional paperwork required.
- Mail Form 4868
Submit Form 4868 either by mail or through an authorized e-filing partner. This option is often used when working with a tax professional. Estimate your tax due, subtract any payments already made, and pay the remaining balance.
Automatic Tax Filing Extensions
Some taxpayers qualify for automatic extensions:
- Military personnel serving outside the U.S. or in combat zones
- U.S. citizens and resident aliens living and working abroad
- Taxpayers in federally declared disaster zones
These individuals do not need to submit a formal extension request, but they must still adhere to payment deadlines.
Key Points to Remember
- A Tax Filing Extension does not delay your tax payment.
- You must pay estimated taxes owed by April 15, 2025.
- File your actual tax return by October 15, 2025 if granted an extension.
Why You Shouldn’t Wait
Filing late without an extension can result in severe penalties and accrued interest. The Tax Filing Extension process is straightforward and can help you avoid unnecessary financial strain. Plus, it gives you ample time to gather paperwork, verify deductions, and work with a tax expert.
At Spyglass Accounting, we help small business owners and individuals confidently manage tax season, including filing extensions and payment planning. Our expert team ensures you stay compliant while maximizing available benefits.
Benefits of Filing a Tax Extension
- More time to file an accurate return
- Reduced stress during tax season
- Avoidance of late-filing penalties
- Opportunity to consult with professionals like those at Spyglass Accounting
FAQs About Tax Filing Extensions
- Is a Tax Filing Extension Automatic?
No, most taxpayers need to apply unless they fall under the automatic extension categories. - Does a Tax Extension Affect My Refund?
Not at all. If you’re due a refund, filing an extension will not delay your payment once the return is filed. - What If I Can’t Pay My Tax Bill?
You should still file a return or an extension and pay what you can. The IRS offers payment plans to help manage outstanding balances.
Final Thoughts
Don’t let tax season catch you off guard. Use a Tax Filing Extension strategically to stay compliant, stress-free, and penalty-free. Whether you’re self-employed, managing a small business, or simply need more time, filing an extension is a smart move.
Need guidance? Reach out to the experts at Spyglass Accounting for personalized tax planning and filing support. Let’s make this tax season smoother together.