April 16th is Fast Approaching, Is Filing an Extension For You? Form 4868 Gives Taxpayers Four More Months

Apr 11, 2001, 01:00 ET from Jackson Hewitt Inc.

    PARSIPPANY, N.J., April 11 /PRNewswire/ -- With nearly 60 million
 taxpayers left to file before April 16th, it is apparent that many are still
 waiting until the last minute to have their tax returns prepared.  Millions of
 Americans are scrambling to make the April 16th deadline, but are beginning to
 realize that they won't make it.  Filing an automatic extension may be the
 answer.
     Completing an Application for Automatic Extension of Time to File U.S.
 Individual Income Tax Return (Form 4868) is a relatively simple process," said
 Mike Lister, executive vice president, Jackson Hewitt Inc.  "Form 4868 is a
 one page form that does not require an explanation of why a taxpayer is
 requesting an extension.  A professional tax preparer can help a taxpayer
 decide if filing an extension is right for them and, if necessary, help them
 estimate their balance due to the IRS so that payment or a payment plan can be
 made in time."
     While it may be uncomplicated to obtain a four month extension, keep in
 mind that the extension is for filing only, not payment.  Completing Form 4868
 does not extend the due date for tax payments.  If a Form 4868 filer does not
 pay the amount due by April 16th, he/she will owe interest and possibly
 penalties as well.
     "The IRS offers a monthly installment plan to pay balances due.  The plan
 minimizes any penalties accruing on outstanding amounts due, provided that you
 request this before April 16th," said Lister.
     Form 9465, Installment Agreement Request, allows taxpayers to pay over
 time instead of paying the entire tax amount due in one lump payment.  If a
 request meets the requirements, the IRS will grant the installment plan and
 charge a taxpayer a $43.00 fee plus interest and penalties on the unpaid
 balance.
     If the additional four months is not enough time to gather information and
 have taxes prepared, Form 4868 filers may be able to get additional time to
 file.  Taxpayers can apply for a two month extension beyond the four month
 period by filing Form 2688, Application for Additional Extension of Time to
 File U.S. Individual Income Tax Return for an extension totaling 6 months.
 Applications for this extension will not be considered if filed after the
 extended due date.
     "Filing an extension should be a taxpayers last resort, because there is
 still time to meet the April 16th deadline," said Lister.  "Although tax
 practitioners are swamped during the last two weeks of tax season and some
 often turn away new customers, tax preparation service locations, such as
 Jackson Hewitt(R) Tax Service offices, welcome new customers during this busy
 time with extended hours, Sunday openings and additional staff.
     Jackson Hewitt Inc., franchiser of the nation's fastest growing and fully
 computerized national tax preparation service, is currently the second largest
 company in this category.  A subsidiary of Cendant Corporation (NYSE:   CD),
 Jackson Hewitt Inc. has more than 3,300 locations in 48 states and the
 District of Columbia.  Each Jackson Hewitt Tax Service location is
 independently owned and operated.  Your local Jackson Hewitt Tax Service
 office can be reached by calling 800-234-1040.  The Jackson Hewitt Tax Service
 web site can be found at http://www.jacksonhewitt.com.
 
 

SOURCE Jackson Hewitt Inc.
    PARSIPPANY, N.J., April 11 /PRNewswire/ -- With nearly 60 million
 taxpayers left to file before April 16th, it is apparent that many are still
 waiting until the last minute to have their tax returns prepared.  Millions of
 Americans are scrambling to make the April 16th deadline, but are beginning to
 realize that they won't make it.  Filing an automatic extension may be the
 answer.
     Completing an Application for Automatic Extension of Time to File U.S.
 Individual Income Tax Return (Form 4868) is a relatively simple process," said
 Mike Lister, executive vice president, Jackson Hewitt Inc.  "Form 4868 is a
 one page form that does not require an explanation of why a taxpayer is
 requesting an extension.  A professional tax preparer can help a taxpayer
 decide if filing an extension is right for them and, if necessary, help them
 estimate their balance due to the IRS so that payment or a payment plan can be
 made in time."
     While it may be uncomplicated to obtain a four month extension, keep in
 mind that the extension is for filing only, not payment.  Completing Form 4868
 does not extend the due date for tax payments.  If a Form 4868 filer does not
 pay the amount due by April 16th, he/she will owe interest and possibly
 penalties as well.
     "The IRS offers a monthly installment plan to pay balances due.  The plan
 minimizes any penalties accruing on outstanding amounts due, provided that you
 request this before April 16th," said Lister.
     Form 9465, Installment Agreement Request, allows taxpayers to pay over
 time instead of paying the entire tax amount due in one lump payment.  If a
 request meets the requirements, the IRS will grant the installment plan and
 charge a taxpayer a $43.00 fee plus interest and penalties on the unpaid
 balance.
     If the additional four months is not enough time to gather information and
 have taxes prepared, Form 4868 filers may be able to get additional time to
 file.  Taxpayers can apply for a two month extension beyond the four month
 period by filing Form 2688, Application for Additional Extension of Time to
 File U.S. Individual Income Tax Return for an extension totaling 6 months.
 Applications for this extension will not be considered if filed after the
 extended due date.
     "Filing an extension should be a taxpayers last resort, because there is
 still time to meet the April 16th deadline," said Lister.  "Although tax
 practitioners are swamped during the last two weeks of tax season and some
 often turn away new customers, tax preparation service locations, such as
 Jackson Hewitt(R) Tax Service offices, welcome new customers during this busy
 time with extended hours, Sunday openings and additional staff.
     Jackson Hewitt Inc., franchiser of the nation's fastest growing and fully
 computerized national tax preparation service, is currently the second largest
 company in this category.  A subsidiary of Cendant Corporation (NYSE:   CD),
 Jackson Hewitt Inc. has more than 3,300 locations in 48 states and the
 District of Columbia.  Each Jackson Hewitt Tax Service location is
 independently owned and operated.  Your local Jackson Hewitt Tax Service
 office can be reached by calling 800-234-1040.  The Jackson Hewitt Tax Service
 web site can be found at http://www.jacksonhewitt.com.
 
 SOURCE  Jackson Hewitt Inc.