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Friday, February 17, 2006

EXTENDING YOUR TAX RETURN WILL BE EASIER THIS YEAR

For one reason or another, many taxpayers (or their paid preparers) are unable to get their returns filed by the applicable due date. As the due date for many returns fast approaches, it is helpful to know that the IRS has made it easier this year to get extensions on the due date for filing.

For business taxpayers filing for an extension, those who previously filed extension forms 8800, 8736, 7004 and 2758 will now only need to file the revised Form 7004, "Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns,” to request an automatic extension of time to file. The revised Form 7004 grants taxpayers an automatic six-month extension without the need to file intervening forms.
For the 2005 filing season, business taxpayers must file Form 7004 by the due date of the return in order to receive an automatic six–month extension of time to file. The extension period is calculated from the due date of the return.
New regulations make this option available to most non-corporate business taxpayers, including partnerships and trusts. Previously, only corporations could request an automatic six-month tax-filing extension. All eligible non-corporate business taxpayers had to request an initial three-month extension and, if more time was needed, then had to request another three months.

A similar change was also made recently for individual taxpayers. Individuals who need additional time to file their tax returns may request an automatic six-month extension by filing Form 4868.
REMEMBER, an extension of time to file a return is not the same thing as an extension of time to pay taxes that are due with the return!

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