Tax Defense Network Explains the Best Times to File an Extension

JACKSONVILLE, FL, July 18, 2012

Tax Defense Network understands how difficult it can be for many people to file taxes on time. That is why the IRS provided the Extension of Time for taxpayers who struggle to have their tax documents ready by April 15th. However, Tax Defense Network warns taxpayers that if they file for an IRS extension after the deadline for filing taxes passes, the IRS will consider it a failure to file taxes.
Tax Defense Network suggests that taxpayers file for an Extension of Time when they are aware they may not be able to file taxes on time due to unavoidable circumstances, such as a death in the family, divorce, theft, disruptions because of natural disasters and so on. Failure to file taxes, even if a reasonable cause exists, can result in a tax debt in which IRS penalties and interest will be charged.
An Extension of Time is a 6-month extension to file. Tax Defense Network lists the reasons when a taxpayer should not file an Extension of Time:
1. If a taxpayer owes money to the IRS and is not able to pay.
Filing an Extension of Time may give a taxpayer more time to pay a tax debt, but the IRS will attach penalties and fees to the tax debt monthly while it remains unpaid.
2. If a taxpayer is trying to look for additional deductions and credits to lower a tax liability.
Tax Defense Network encourages all taxpayers to file their taxes in their best interest. However, taxpayers are not encouraged to use the time to file additional deductions and credits that aren't warranted. The IRS may audit and fine a taxpayer for fraud, leaving them with a hefty tax debt.
3. If a taxpayer is already in an IRS program.
Tax Defense Network explains that taxpayers who are in an Installment Agreement should make sure they find out if they owe the IRS before filing an extension because the agreement will become void if the tax debt remains unpaid, even if the extension has been filed.
Tax Defense Network is America's leading tax debt resolution company with over a decade of experience in resolving tax issues of American taxpayers, protecting taxpayers from the pain and hassle of dealing with the IRS on tax issues by themselves. Tax Defense Network's reputation of getting the best tax solutions for taxpayers has helped propel the company as one of the most trusted in the tax resolution industry.

For more information on Tax Defense Network, and its debt relief services, please visit http://www.taxdefensenetwork.com/pr or call (888) 605-5657 for a free consultation. For other inquiries, contact kara.nuckles@taxdefensenetwork.com