Saturday, June 30, 2007

Extension Due Date for 2006 Tax Return - A Pleasant Surprise

This year I filed Form 4868 for an extension of my 2006 tax return due date. In the past, that would have extended my due date until August 15, 2007, which is what I expected would be my new filing due date. However, this year, the extension is an automatic six months until October 15, 2007.

I learned of the automatic six month extension when I started working on the 2006 tax return this past weekend, against what I thought was an August 15, 2007 deadline. In reviewing the details of Form 4868, I realized the IRS had changed to an automatic six month extension. The information was in the section Total Time Allowed on page 2 of Form 4868. In the past, it had been an automatic extension to August 15, with a second request needed for a "justified" extension to October 15. For either extension, the expected tax liability must have been paid by April 17, 2007 to avoid any penalties.

It was a pleasant surprise that I now have additional flexibility to get my 2006 taxes done. I didn't find any reason for the revision to an automatic six month extension. I suspect it is due to the increase in people requesting longer extensions, due to service in Iraq, natural disaster or everyday procrastination. Whatever the reason, having a six month extension will be very helpful for me this year.

For more on Reflections and Musings , check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

No comments: