In fact, getting a tax extension can actually reduce your chances of facing an IRS audit. While no one outside the IRS can say for sure how the audit selection process works, it is safe to say that a tax extension does not do anything to trigger an audit.

What is the penalty for not filing an extension?

Late Filing Fees u/s 234F The maximum penalty is Rs. 10,000. If you file your ITR after the due date (30th Sep) but before 31 December, a penalty of Rs 5000 will be levied. For returns filed later than 31 December of the relevant assessment year, the penalty levied will be increased to Rs.

What happens when you get an income tax extension?

A tax extension gives you the time you need to prepare a completely accurate tax return, but the IRS will not wait six months to receive the taxes you owe. If your tax return comes out better than you had expected, you may get a tax refund. If it comes out worse than expected, you will have to pay the additional tax due to the IRS.

How to file a tax extension for free?

E-file Your Extension Form for Free. Individual tax filers, regardless of income, can use Free File to electronically request an automatic tax-filing extension. Filing this form gives you until Oct. 15 to file a return. To get the extension, you must estimate your tax liability on this form and should also pay any amount due.

Is there a penalty for filing an extension?

Keep in mind, you may not be subject to a late payment penalty if you filed a tax extension on time (by the original deadline of your return) and paid at least 90% of your tax liability with your extension. At FileLater.com, you can file your tax extension online and electronically pay your tax due using our IRS-approved e-file system.

Is there an extension for filing taxes for 2020?

2021 Federal Tax Deadline Extensions The federal tax filing deadline for 2020 taxes has been automatically extended to May 17, 2021. Due to severe winter storms, the IRS has also extended the tax deadline for residents of Texas, Oklahoma and Louisiana to June 15, 2021. This extension also applies to 2020 tax payments.