Firstly, it is important to note that a specific group of taxpayers automatically quality for extensions to file their tax returns. Taxpayers living abroad are allowed an automatic extension to June 15 to file if their main place of business and the home they live in are outside the United States and Puerto Rico as of April 15. Taxpayers can also get an extension of time to October 15 if they qualify for the June 15 extension.
Firstly, it is important to note that a specific group of taxpayers automatically quality for extensions to file their tax returns. Taxpayers living abroad are allowed an automatic extension to June 15 to file if their main place of business and the home they live in are outside the United States and Puerto Rico as of April 15. Taxpayers can also get an extension of time to October 15 if they qualify for the June 15 extension. Members of the military and others, serving in Iraq, Afghanistan or other combat zones localities and people that are affected by certain tornadoes, severe storms, floods and other recent natural disasters.
Estates also qualify for automatic extensions. An estate (other than a bankruptcy estate) that files an application for an automatic extension of after June 23, 2011, may be allowed an automatic 5-month extension of time to file its return. An estate in bankruptcy proceedings may be allowed an automatic 6-month extension of time to file its return.
The Internal Revenue Service (IRS) is making it easier and quicker for citizens that are behind in filings and taxes owing. Tax-filing extensions are available to taxpayers who need more time to finish their returns if they make this request before the April deadlines of each year.
A 6 month extensions are available to taxpayers as long as they request the extension by the April deadline if done so before this deadline. Further extensions can even be obtained as long as they are requested by the second deadline. The extension can be requested online or over the phone. The online request only takes a few minutes by filing out Form 4868.
When for 4868 is properly completed late-filing penalties amounted to five percent per month based on the unpaid balance can be avoided.
When Taxpayers file their returns they qualify for the many tax deductions and through the various federal and state government programs. One such example is The National Disaster Relief Act. This Act provides the following tax benefits:
• Allows all taxpayers, not just those who itemize, to claim the casualty loss deduction regardless of the taxpayer’s adjusted gross income level;
• Increases the amount by which all individual taxpayers must reduce their personal casualty losses from each casualty from $100 to $500 for taxable years beginning after Dec. 31, 2008. The reduction amount returns to $100 for taxable years beginning after Dec. 31, 2009;
• Removes the requirement that the net casualty loss deduction be allowed only if the casualty loss exceeds 10 percent of the taxpayer’s adjusted gross income;
• Provides a five-year net operating loss (NOL) carryback for qualified natural disaster losses.
• Waives certain mortgage revenue bond requirements for affected taxpayers and allows the bond proceeds to be used for rebuilding.
Even when tax returns are filed many taxpayers neglect to check on their refunds. More than $1.1 billion of refunds remain unclaimed from the Internal Revenue Service. All that a taxpayer has to do is called the IRS or check online for the status of their refund and make a claim for it. “These refunds could be a great way to help many taxpayers pay done some debt” says Edward Palonek, who is the founder of an online unclaimed money search service called foundmoney.com, which specializes in providing information on the whereabouts of unclaimed and forgotten money.
Even if you owe taxes from previous years, a taxpayer can use the refund to offset those. Taxpayers can even use the unclaimed refund to offset unpaid child support or past due federal debts such as student loans.
“In difficult times like these, every dollar counts so make sure to maximize your refund keep the IRS informed of your current address and make a claim for that refund that rightfully belongs to you”, says Palonek.
Foundmoney.com
EdwardPalonek.org