Can You File an Extension on Tax Day? Here’s What to Know

Tax deadlines can be stressful, especially if you’re not ready to file by the due date. Fortunately, the IRS allows taxpayers to request an extension, giving them extra time to submit their returns. However, this only applies to filing, not to paying any taxes owed.

Basic Criteria for an Extension

The IRS grants an automatic six-month extension to taxpayers who request one, moving the deadline from April 15 to October 15. Individuals must submit Form 4868, while businesses use Form 7004. These forms require basic identifying information and a reasonable estimate of tax liability. The IRS expects this estimate to be as accurate as possible, as significant discrepancies could lead to penalties or an audit.

While the extension allows more time to file, it does not extend the deadline for paying taxes owed. If a taxpayer underestimates their liability and pays less than 90% of the total amount due by the original deadline, they may face a failure-to-pay penalty of 0.5% per month on the unpaid balance, up to 25%. Interest also accrues daily at a rate based on the federal short-term rate plus 3%. Those unable to pay in full should consider setting up an installment agreement with the IRS to reduce penalties.

Certain taxpayers receive automatic extensions without filing a request. U.S. citizens and residents living abroad have until June 15 to file, though interest on unpaid taxes still applies from April 15. Military personnel serving in combat zones receive at least 180 days after leaving the combat zone to file and pay without penalties or interest. Disaster victims in federally declared areas may also qualify for extended deadlines based on IRS announcements.

Handling Last-Minute Requests

Waiting until the last minute to request an extension can be risky. The IRS considers submissions timely based on when they are received, not when they are prepared. Electronic filing is the fastest and most reliable method, as paper submissions must be postmarked by the due date, which can be difficult to verify if mailed late.

Even though an extension grants extra time to file, taxpayers must still estimate their tax liability. If necessary documents, such as 1099s, W-2s, or deductible expense records, are missing, reviewing prior-year returns or bank statements can help generate an estimate. Underestimating significantly could increase the likelihood of penalties or further scrutiny.

For those struggling to pay their estimated tax liability, short-term borrowing may be worth considering. The IRS charges interest on unpaid balances, compounded daily. Depending on creditworthiness, alternatives such as a low-interest personal loan or a 0% introductory APR credit card may be less expensive than IRS penalties and interest.

Standard Methods of Submission

Extension requests can be submitted electronically or by mail. Electronic filing provides instant confirmation. Taxpayers can use IRS Free File, available to those earning $79,000 or less in 2024, or commercial tax software providers that support Form 4868. Many e-filing platforms also allow taxpayers to pay estimated taxes directly through bank transfers or credit card payments.

Mailing a paper Form 4868 is another option. The IRS designates specific mailing addresses based on the taxpayer’s state of residence, updated periodically on the agency’s website. Sending paper submissions via certified mail with a return receipt ensures proof of timely filing. Processing paper forms takes longer than electronic submissions, meaning taxpayers may not receive confirmation right away.

Taxpayers can also obtain an extension by making an electronic tax payment. The IRS automatically grants an extension when a taxpayer submits a payment through Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit/credit card processor and selects “extension” as the reason for payment. This method eliminates the need to file Form 4868 separately.

Possible Delays or Penalties

Processing times for extension requests vary based on submission method and IRS workload. Electronic requests are typically confirmed within 24 hours, but high traffic near the deadline can cause temporary slowdowns. Mailed forms carry additional risks, as postal delays or misdirected mail may result in the IRS not receiving the request on time. If an extension is improperly filed or lost in transit, the IRS will not grant relief retroactively, potentially leading to late-filing penalties.

Failing to meet estimated tax payment obligations can also result in financial consequences. If the IRS determines that a taxpayer significantly underpaid their estimated liability, an underpayment penalty may apply. This penalty is calculated using the federal short-term rate plus 3%, compounded daily, and is assessed based on the shortfall in quarterly estimated payments. Unlike the failure-to-pay penalty, which accrues monthly, the underpayment penalty is assessed as soon as the IRS identifies a deficiency.

Confirming Success After Filing

Once an extension request has been submitted, verifying that it was accepted is essential. The IRS does not send formal approval notices, so taxpayers must check their status. Those who filed electronically can check their status through the same tax software or e-filing service used to submit the request. The IRS typically issues confirmation within 24 to 48 hours, and taxpayers should save this acknowledgment for their records. If no confirmation is received within a few days, contacting the IRS directly may be necessary.

For those who mailed a paper Form 4868, confirmation takes longer. The IRS does not provide real-time tracking for mailed extensions, making it essential to retain proof of mailing, such as a certified mail receipt. If the extension request is not recorded in the IRS system and the taxpayer lacks proof of timely submission, they may face late-filing penalties. If an extension is rejected due to errors, such as incorrect taxpayer identification numbers or miscalculations in estimated tax liability, the IRS may still impose penalties unless the mistake is corrected promptly. Taxpayers who discover an issue should act quickly to resolve it, as the failure-to-file penalty accrues at 5% per month on any unpaid balance, up to 25%.