Understanding Tax Extensions and How to File in 2024
Tax season can be stressful, especially if you need more time to gather documents, finalize deductions, or handle unexpected financial situations. Fortunately, the IRS offers a tax extension, which grants additional time to file your return. However, it’s important to remember that a tax extension only provides extra time to file—not to pay. Any unpaid taxes after the original deadline may accrue penalties and interest.
If you’re a resident of Seminole, OK, and need guidance on how to file a tax extension for 2024, Roger Ely CPA is here to help. As the most trusted CPA in Oklahoma, we specialize in ensuring you meet all IRS and state tax requirements while avoiding unnecessary penalties.
What Is a Tax Extension and How Does It Work?
A tax extension is a formal request to the IRS for an additional six months to file your tax return. By filing an extension, you extend your filing deadline from April 15, 2024, to October 15, 2024. However, if you owe taxes, you must pay your estimated tax liability by April 15, 2024, to avoid penalties and interest.
Common Reasons to File a Tax Extension
Many taxpayers file extensions due to the following reasons:
- Missing important tax documents (W-2s, 1099s, K-1s, etc.).
- Needing extra time to organize deductions and credits.
- Experiencing unexpected life events, such as medical emergencies or relocations.
- Running a small business and requiring more time for bookkeeping.
- Needing to avoid filing a rushed and potentially inaccurate return.
- Complex tax situations, such as multiple income sources or significant investment earnings.
If any of these apply to you, filing a tax extension may be a smart move.
How to File a Tax Extension for 2024
Filing a tax extension is a straightforward process, but it must be done before the April deadline to be valid. Here are the steps to ensure you successfully request an extension:
Use IRS Form 4868
To file for an extension, you must submit IRS Form 4868, officially known as the “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” There are multiple ways to do this:
- E-file: You can electronically file Form 4868 using IRS Free File or tax preparation software.
- Mail: Download, complete, and mail a paper Form 4868 to the IRS before the deadline.
- Tax professional assistance: Roger Ely CPA can file your extension for you, ensuring all details are correct.
Making an Estimated Tax Payment
If you owe taxes, you must estimate your liability and make a payment by April 15, 2024. The IRS provides several payment options:
- IRS Direct Pay: A free way to pay online directly from your bank account.
- Electronic Federal Tax Payment System (EFTPS): A secure IRS payment system.
- Credit/Debit Card: Payments can be made via IRS-authorized payment processors (fees may apply).
- Check or Money Order: Mailed payments must be postmarked by April 15, 2024.
When making a payment, select “extension” as the reason, and the IRS will automatically grant your request.
Do I Have to Pay Taxes When Filing an Extension?
Yes! One of the most common misconceptions about filing a tax extension is that it postpones tax payments. While the extension allows you extra time to submit your return, any taxes owed must still be paid by April 15, 2024. If you fail to pay at least 90% of your estimated liability, you may face penalties and interest charges.
Penalties for Not Filing or Paying Taxes on Time
If you miss the deadline to file or pay, you may face costly penalties:
- Failure-to-file penalty: 5% of unpaid taxes per month (up to 25%).
- Failure-to-pay penalty: 0.5% of unpaid taxes per month (up to 25%).
- Interest charges: Interest accrues daily on any unpaid balance.
Does a Tax Extension Affect Oklahoma State Taxes?
Oklahoma follows different tax extension rules than the IRS. If you file a federal extension, you do not automatically receive an Oklahoma state extension. To extend your Oklahoma state tax return deadline, you must file Form 504-I with the Oklahoma Tax Commission by April 15, 2024.
Just like with federal taxes, you must still pay any state tax liability by April 15 to avoid penalties and interest.
Special Tax Extension Situations
U.S. Military Personnel
If you are serving in a combat zone, you automatically receive an extension to file and pay taxes. The deadline is typically extended 180 days after leaving the combat zone.
U.S. Citizens Living Abroad
If you live outside the U.S. on April 15, 2024, you may qualify for an automatic two-month extension to June 15, 2024. However, interest will still accrue on any unpaid balance.
Business and Partnership Tax Extensions
C-Corporations (Form 1120)
C-Corporations can request a six-month extension using Form 7004. The extended deadline is October 15, 2024.
Partnerships & S-Corporations (Form 1065 & 1120S)
Partnerships and S-corporations must file by March 15, 2024. They can file Form 7004 to extend their deadline to September 15, 2024.
How Roger Ely CPA Can Help You File a Tax Extension in Seminole, OK
Filing a tax extension is a valuable option, but estimating your taxes and avoiding penalties can be complicated. That’s where Roger Ely CPA comes in! We specialize in helping individuals and businesses in Seminole, OK, with all tax-related matters, including:
✅ Estimating your tax liability to prevent underpayment penalties.
✅ Filing your federal and Oklahoma state tax extension on time.
✅ Providing expert tax planning to reduce your tax burden.
✅ Ensuring compliance with the latest tax regulations.
✅ Assisting businesses with payroll tax extensions and compliance.
✅ Helping self-employed individuals manage quarterly estimated tax payments.
Don’t leave your taxes to chance—let Roger Ely CPA handle your tax extension needs.
Contact the Most Trusted CPA in Oklahoma
For expert tax assistance in Seminole, OK, contact Roger Ely CPA today!
📞 Phone: 405-684-0486
🌐 Website: www.oklahomacity-accountant.com
Get peace of mind this tax season—call Roger Ely CPA and let us help you file your tax extension on time!