Filing for a tax return extension in the US is simple, but does not guarantee exemption from fees or interest on taxes owed. Form 4868 is used for personal taxes, while Form 7004 is used for corporations, trusts, or partnerships. Special circumstances may qualify for extensions, but it is important to calculate and pay taxes owed to avoid late fees and interest charges.
Getting an extension on a tax return from the US Internal Revenue Service is a fairly straightforward process and simply involves, in most cases, which form you need to file. There are a couple of things to know about filing an extension, especially if you think you owe taxes. An extension does not guarantee that you will not be charged fees or interest on taxes owed, unless you have a plan worked out with the IRS.
For personal taxes, you can get an extension on a tax return by filing IRS Form 4868, also called Request for Automatic Extension of Time to File US Tax Return. Such an extension will cover you if you are filing a return on your own, or give you and your spouse an extension on a tax return if you are married filing jointly. If you are married filing separately, you may each need to complete a Form 4868.
Form 4868 must be filed before the income tax deadline, usually April 15 for individual tax returns. It will offer you a six-month extension on filing your taxes, although there are some exceptions. If you are out of the country when your tax return is due on October 15, you may qualify for an additional two months to file your taxes and have until December 15 to file your return. If you are in the US military and serving in an active combat zone, or hospitalized as a result of an injury sustained in a combat zone, you generally have an automatic 180-day extension on a tax return that it begins the day you leave the combat zone or the day you leave the hospital. To learn more about this, read IRS Publication 3, called the Armed Forces Tax Guide.
You can also get an extension on a tax return if you file for corporations, trusts, or partnerships. To get this extension, you must file Form 7004. This will again extend the time you have to file your taxes by six months. The only difference between this form and Form 4868 is that the extension time begins at the end of your tax year. Some companies may not have the same tax year as individuals. Again, the form must be filed before the last date of your tax year.
Some other forms may give you an extension on a tax return if you have special tax circumstances. For example, if you need more time to pay estate taxes, you can request extensions. Check with the IRS or your accountant to see if you qualify for an extension on a tax return based on your special circumstances.
As noted, most extensions will ask you to calculate the tax you owe, if you think you owe any. If you don’t make an agreement with the IRS to start paying taxes, expect to pay late fees. Also expect the IRS to start charging you interest on any money you owe when you file your taxes, if you can’t pay it right away. It is a good idea, if you have not filed your return, to make an installment agreement with the IRS. At the very least, start making payments to the IRS if you know you will owe taxes when you finally file. These payments may be deducted from the amount you owe at the time of filing.
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