Can You File More Than One Tax Extension?
Clarify how tax filing extensions work and understand their limits to avoid common misconceptions and penalties.
Tax extensions offer a way to alleviate the pressure of deadlines, providing additional time to prepare and submit a tax return. This mechanism helps taxpayers avoid penalties for late filing, ensuring compliance even when circumstances make meeting the original deadline challenging.
Understanding Tax Filing Extensions
A tax extension provides taxpayers with an automatic additional period to file their federal income tax return. For most individual taxpayers, this period is typically six months, moving the deadline from April 15 to October 15. It is important to understand that this extension applies solely to the time allowed for filing the return, not for paying any taxes owed. Therefore, taxpayers should estimate and pay any tax liability by the original due date, even if they request an extension to file.
There is no provision for filing “more than one” federal tax extension for a single tax year. The process involves a single request, typically for an additional six months, which is automatically granted upon proper submission. This means that once a taxpayer receives this extension, they cannot request a second extension period after the first one expires.
Requesting a Federal Filing Extension
The primary method for individual taxpayers to obtain a federal tax filing extension is by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form grants an automatic six-month extension for filing Forms 1040, 1040-SR, or 1040-NR. The form must be filed by the original tax deadline, typically April 15.
To complete Form 4868, taxpayers need to provide personal information, an estimate of the total tax liability for the tax year and any total tax payments already made are also required. The extension does not extend the payment deadline.
Taxpayers can submit Form 4868 electronically through tax software, a tax professional, or via the IRS Free File program. Alternatively, the form can be mailed to the IRS. If a taxpayer makes an electronic payment for their estimated tax liability by the original due date, the IRS will automatically process an extension of time to file, eliminating the need to submit Form 4868 separately.
Consequences of Late Filing and Payment
Failing to meet tax obligations, even with an extension, can result in penalties and interest. Taxes owed are still due by the original tax deadline, regardless of whether a filing extension has been granted.
A failure-to-file penalty applies if the tax return is not submitted by the extended deadline. This penalty is typically 5% of the unpaid taxes for each month or part of a month the return is late, with a maximum penalty of 25%. If the return is more than 60 days late, a minimum penalty may apply, which is the lesser of a specific amount or 100% of the tax due.
Conversely, a failure-to-pay penalty is assessed if taxes are not paid by the original due date, even if an extension to file was obtained. This penalty is generally 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, also capped at 25% of the unpaid tax. If both penalties apply in the same month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty. Additionally, interest accrues on any underpayments from the original tax due date until the tax is paid in full. The interest rate is set quarterly.
State Tax Extensions
State tax extension rules can differ from federal regulations, requiring taxpayers to understand their specific state’s requirements. Some states automatically grant an extension to file if a federal extension (Form 4868) is filed, meaning no separate state-specific form is needed. In these instances, taxpayers may simply need to attach a copy of their federal extension when they eventually file their state return.
Other states, however, require taxpayers to submit a separate, state-specific extension request form, regardless of whether a federal extension has been filed. It is important to note that, similar to federal extensions, a state extension to file does not extend the time to pay any state taxes owed. Taxpayers should consult their state’s tax agency website to confirm specific filing requirements, forms, and payment deadlines to avoid potential penalties.