
Beginning this year, individual
taxpayers are eligible for an automatic six-month extension to file their
returns. Partnerships and other businesses are able to take advantage of
simplified extension processes. The IRS estimates that the simplified filing
procedures will save taxpayers time and money.
New
procedures
Taxpayers will simply fill out one
Form 4868, to be granted
an automatic six-month extension. No explanation or signature will be necessary.
The result is that
taxpayers who timely file
Form 4868 have until October 16, 2006 to submit
their returns. Of course, this is merely an extension of time to file and not to
pay.
Business
taxpayers
Business taxpayers will see a
modification in their filing extensions procedures beginning
in 2006 as well. Currently, C corps and S corps file
Form 7004, Application for
Automatic Extension of Time to File Corporation Income Tax Return while
partnerships, REMICS and certain trusts must file
Form 8736, Application for
Automatic Extension of Time to File U.S. Income Tax Return for a Partnership, REMIC, or Certain Trusts.
This year, the IRS
modified Form 7004 so that partnerships, REMICS and certain trusts may also
use it to obtain an automatic six-month extension.
Other
modifications
The IRS modified
Form
5558, Application for Extension of Time to File Certain Employee Plans Returns
and Form 8893, Payment of Gift/GST tax and/or Application of Time to File
Form
709. Taxpayers no longer have to explain why they are seeking an extension.
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