Individual Tax Extensions Extended

The IRS recently issued new regulations which will allow for a streamlined extension process for individuals. Instead of receiving a four-month extension on April 15th, individuals will now be able to extend their due date to October 15th with one filing.

While individuals could already extend six months to October 15th, the process required an initial four-month extension to August, then an additional two-month extension to be filed by August 15th. The second extension request also wanted an explanation of the reason you needed a second extension, while the new system provides for automatic extensions of six months right off the bat.

One important item to remember about extensions is that they're always extensions of the filing deadline, but NOT the payment due date. Even if you need an extension, you must pay your tax in full by April 15th to avoid late payment penalties.