It's tax time and there's really no way you could miss it, what with "I've got people" commercials and college students dressed up as Lady Liberty hawking tax prep services on every corner. As April 15 marches closer, the lines at local accountants will be getting longer and prices will also increase. You may want to think about filing for a tax extension with the IRS.
This is where FileLater, an online tax extension processor, steps in to walk you through the process of scoring a 6-month tax extension.
Filing for an extension is great for those of us who started a new venture sometime in 2008. If you're dealing with additional pre-tax income like me, you may want an extension so you can meet with a CPA when the dust settles and find all the deductions you can to offset what you owe.
Yes, it's true that you can file for free by yourself, and if your taxes are the same as last year, you're lazy, or you can't find all your documents yet, this is the simplest option. But for more complicated returns, there are definite benefits to be wrung from e-filing for an extension.
First and foremost, filing for an extension electronically provides you with a confirmation that the request was received and processed correctly, something you can't get by mailing your form directly to the IRS. If your request is denied, due to incorrect information, FileLater will help you correct the problem and re-file it for no additional charge. Additionally the built-in tax calculators and live chat support make the fee worth it for anyone wary of making a mistake due to new information.
The one thing you can't do with an extension no matter how you file is delay making any payments to the IRS, though if you aren't able to pay your estimated amounts, filing for an extension will at least let you avoid the late filing penalties. If you expect to owe the IRS money this year, you can make use of FileLater's e-file certification to pay the estimated taxes from your bank account.
FileLater is essentially a Turbo Tax style tool for filing for an extension, which also comes with the bonus of knowing that your extension was received and approved. The service is $17.95 for individuals including 1099 contractors, single member LLCs and Schedule C Sole Proprietors and $29.95 for businesses.
WalletPop readers can file for an extension cheaper by using the coupon code Pop20 for 20% off a tax extension e-file.
Need more time? FileLater helps you file for 6-month tax extension: 20% off for Walletpop readers