My tax extension application was rejected! Why? What do I do now?

The IRS does not reject many tax extension applications. The two most common reasons for rejection are:

• An error in the application form or
  
• A change in information that the IRS didn't know about. For example, if you changed your business address since your last communication with the IRS, they may not be able to match your tax information to the extension application information.

Check your application to make sure you didn't make an error.
If your extension is rejected, you can re-apply, but if you didn't file the application until the tax due date, you may have fines and penalties due. There is a short grace period (until April 22, 2010) to re-file the extension. File early so if your extension application is rejected you will be able to re-file before the tax due deadline.