Income Tax

5 Good Reasons to File an Income Tax Extension:

With not much time remaining until the April 15 IRS income tax deadline, many Americans are scrambling to finalize their income tax returns.
This year, a growing percentage of taxpayers will choose to file an IRS income tax extension, which will postpone their tax deadline to October 15.

If you’re considering filing an income tax extension, you’re not alone. The IRS recently estimated that 10.2 million of the 140 million tax filers will file for a tax extension this year. What’s more, approximately 2 million of those extensions will be electronically filed online.

File Later tax extension service - a popular website where taxpayers can file their income tax extension - compiled the following list of reasons why taxpayers should consider joining the growing trend of taxpayers filing a tax ex tension rather than stress about getting their returns completed by April 15.

Although the IRS doesn’t care (or ask) why millions of taxpaying Americans file for extensions every year, you may find these valuable:

1. Accountants and tax professionals are much busier in April than they are in October: Getting the proper amount of time with an accountant gets harder and harder the longer you wait leading up to April 15. Extending your income tax deadline to October 15 will give your accountant or tax pro that extra time to focus on your tax return, which may mean extra tax savings in your pocket.

2. Filing an income tax extension may reduce your chance of audit. IRS auditors> have quotas they need to meet every year on the number of returns audited. Returns are sorted for auditors by filing date, and most auditors will have met their quotas before they get to extended returns.

3. Getting paperwork together to complete your taxes isn’t easy: Organizing that shoebox of W2s, 1099s, mortgage interest statements, and receipts can take longer than you expect. Giving yourself the extra time needed will ensure you’re taxes are done right, and extending will give you extra time to track down any additional deductions so you’re getting the biggest tax return possible.

4. For business owners, funding retirement plans such as Simplified Employee Pensions (SEPs) or SIMPLE IRA’s can be expensive: Filing for an income tax extension will also extend your deadline to fund these types of retirement plans.

5. It’s easy: Your income tax extension can be filed in less than 10 minutes using an online provider like File Later. The process is completely paper-free, and your extension will be e-filed, meaning you’ll get an email confirming the IRS has approved your extension, and you’ll have 6 more months to finalize your tax return.

And remember, even though you may be interested in the reasons to extend your income tax return, the IRS doesn’t care or ask. As long as your application is filed correctly, your extension will be granted by the IRS and your new tax deadline will be October 15.

Ref:www.articlesbase.com

Life Insurance FAQ on Claims :-

Life Insurance FAQ on Claims:

How do I make a death claim?

In the event of death of the insured during the term of the life insurance policy, the nominee has to intimate the insurance branch. Thereafter, a claim form has to be filled and submitted to the office with the original policy documents and the death certificate.

This entire process could take up time; ranging from a few weeks to three to four months, if all the paperwork is in place. In case of complications, it could take much longer.

Do I have to claim maturity benefit or is it automatically payable to me?

The claim amount is not automatically payable to you. You need to sign and send back a discharge form/voucher/claim form that is sent to you by the insurance company (usually, sent more than a month before the maturity date). Other formalities may vary from company to company.

Once approved by the company, the proceeds of the policy are sent by mail or electronically cleared by the company, depending on the choice you make.

Is the maturity amount tax free?

Yes, the proceeds from a life insurance policy are tax-free on maturity.

Is the death benefit taxable?

No. The death benefit is a tax-free sum of money paid to the nominee.