An IRS filing extension allows taxpayers to file their federal tax returns up to six months after the due date of April 15. To request an extension, complete Form 4868 and estimate any taxes owed. Failure to estimate correctly can result in tax penalties. State tax extensions and procedures for those living outside the country may vary. Requesting an extension does not increase the likelihood of an audit.
A filing extension is a time allowance from the Internal Revenue Service that allows people to file their tax returns up to six months after the due date. Federal tax returns must be filed on April 15 of each year; an extension of the filing will move that due date to October 15. An extension application must be submitted, but approval is automatic.
To request a filing extension, you must complete IRS Form 4868: Application for Automatic Filing Time Extension. The form can be found and printed online for free. It can then be filed electronically or archived electronically, which is the preferred method for many people. That’s because many people complete their tax returns online, through an IRS-approved software program. The other option is to simply fill out the form by hand, in black or blue ink, and submit it to the IRS.
The form must be stamped by 15 April; automatic approval for a filing extension is then granted. However, there is one important thing to keep in mind when applying for a deposit extension. The deadline for the tax return has been extended to October 15, but the deadline for any taxes due does not change. 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, because 90 percent of the taxes owed must be paid.
If this is not done, or the estimate is incorrect, tax penalties will apply. If you need to pay the estimated taxes owed with a credit card, you will typically need 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 them separately. Procedures also differ for people who live outside the country but need to file a US tax return.
Some fear that requesting an extension could cause one to be reviewed. The IRS doesn’t share its process for determining who will get audited and who won’t, but experts generally believe filing for an extension doesn’t change the odds one way or the other. Any questions about a filing extension or 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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