IRS Tax Extensions on the Rise

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As the income tax deadline arrives tonight at midnight, more American taxpayers are choosing to file an IRS income tax extension - giving them an extra 6 months to file their taxes.

IRS tax extension filings have jumped dramatically this year. The Internal Revenue Service is predicting that tax extension filings will increase this year by nearly 5 percent, with the majority of that growth happening with e-filed tax extensions.

FileLater (http://www.filelater.com), the leader in online tax extensions, is experiencing the same trend in its business of online tax extensions for individuals and businesses. Consumers have filed more tax extensions with FileLater through March 2008 than all of last season. The company has already experienced more than 10 times the website traffic this April as compared to the same month last year.

The struggling economy is creating more complicated tax situations and having an impact on the ability of individuals and businesses to file their taxes on time. Some of the most common contributors to tax complexity and the need for tax extensions are

  •     Foreclosures
  •     Unemployment
  •     New Tax Laws
  •     Loans from 401Ks

Many consumers don't have the money to devote to a professional for last-minute filings or they need more time to ensure paperwork is completed correctly and that all possible deductions are captured.

The IRS due date for a personal tax extension is midnight tonight, April 15, 2009. Filing a tax extension will extend the filing deadline to October 15. Failure to file taxes can result in stiff penalties and interest payments. The late filing penalty, which can be avoided by filing for a tax extension, is $50 per month for every $1,000 owed to the IRS in late taxes.

The IRS urges taxpayers who need more time to finish their tax returns to e-file a tax extension. An IRS tax extension is automatic, which means the IRS does not ask for a reason for the extension.

Taxpayers can either download the form from the IRS website or e-file your tax extension using FileLater (http://www.filelater.com). FileLater will send an email confirmation when your extension is IRS approved and provides 24 hour support to answer any questions.

About FileLater (http://www.filelater.com):
FileLater is a safe, easy and convenient online service for individuals and businesses to file tax extensions. An IRS tax extension gives individuals up to six more months to file a tax return, extending the deadline from April 15 to October 15, and extends the business deadline to September 15. FileLater allows individuals and businesses to extend deadlines for federal taxes, and, as laws vary from state to state, provides instructions and relevant forms to extend state tax deadlines for all states. Tax extensions do not extend the time for individuals or business to make a payment, only to file the necessary paperwork, however taxpayers can use FileLater to submit payment to the IRS directly from their bank account. The company was developed so people without tax expertise can extend their tax deadlines without involving a professional tax preparer and to provide a better solution for people who already file their own tax extensions. To view a demonstration of their tax extension service, visit the demo page: http://www.filelater.com/demo.html.

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Ryan Thompson
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