A filing extension allows individuals to file their tax returns up to six months after the due date. To request an extension, complete IRS Form 4868 and estimate and pay any taxes owed. Requesting an extension does not increase the likelihood of being audited.
A filing extension is a time allowance from the Internal Revenue Service that allows individuals to file their tax returns up to six months after the due date. Federal tax returns are due by April 15 of each year; a filing extension will push that due date back to October 15. An application for an extension is required, but approval is automatic.
To request a filing extension, you must complete IRS Form 4868: Request for Automatic Extension of Time to File. The form can be found and printed online for free. It can then be filed electronically, or filed electronically, which is the preferred method for many people. This is because many people complete their tax returns online, through an IRS-approved software program. The other option is to simply complete the form by hand, in black or blue ink, and mail it to the IRS.
The form must be postmarked by April 15; Automatic approval is then given for a file extension. However, there is one important thing to keep in mind when requesting a file extension. The tax filing deadline is extended to October 15, but the due date for any tax due remains the same. If you already know that taxes will be due, you need to estimate that amount and submit it to the IRS. It is important to estimate carefully, since 90 percent of the taxes owed must be paid.
If this is not done, or the estimate is incorrect, tax penalties will be imposed. If one needs to pay the estimated taxes owed with a credit card, it will usually be necessary to call the IRS and make the payment over the phone. State tax extensions can vary from state to state so you will need to research this separately. Procedures are also different for people who live outside the country, but need to file a US tax return.
Some are concerned that requesting an extension will get you audited. The IRS doesn’t share its process for determining who will and won’t be audited, but experts generally believe that requesting an extension doesn’t change the odds one way or the other. Any questions about a filing extension or a specific tax situation should be directed to an accountant, or you can call the IRS directly or search the website for answers to many questions.
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