Form 4868: How to File for a Tax Extension
Understand the process for obtaining an automatic six-month tax filing extension and the critical steps for handling your payment to avoid penalties.
The Internal Revenue Service (IRS) provides a way to request more time to file your taxes through Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Submitting this form grants an automatic six-month extension to file returns like Form 1040, moving the deadline from April 15 to October 15. This is an extension of the time to file your return, not an extension of the time to pay any taxes you owe.
Information Needed to File for an Extension
To request an extension, you must provide specific personal and financial information. The first part of Form 4868 requires your name, address, and Social Security number, along with the same information for your spouse if filing a joint return. The second part of the form requires a good-faith estimate of your tax situation for the year. You will need to calculate your estimated total tax liability and your total payments for the year. This figure includes federal income tax withheld from paychecks, any estimated tax payments made, and other payments or refundable credits. The difference between your estimated liability and total payments determines your balance due.
How to Submit Your Extension Request
There are several ways to submit your extension request. The most common method is to file electronically using IRS Free File or a commercial tax software service, which transmit Form 4868 directly to the IRS. Another method is to make an electronic payment for part or all of your estimated tax due. Using systems like IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS) and indicating the payment is for an extension automatically processes your request without filing a separate form. For those who prefer paper, you can download Form 4868 from the IRS website and mail it. You must check the IRS instructions for the correct mailing address, as it varies by location and whether you are including a payment.
Paying Your Estimated Tax Due
Even with a filing extension, the deadline to pay any taxes owed remains April 15. Failure to pay on time can lead to penalties and interest. The failure-to-pay penalty is 0.5% of the unpaid taxes for each month the tax remains unpaid, and it is capped at 25% of the unpaid amount. This rate can change under certain circumstances, such as being on an approved IRS installment plan. Interest also accrues daily on the underpayment, and the rate can be adjusted quarterly.
You should pay your estimated tax liability by the original due date to avoid these charges. If you are mailing a paper Form 4868, you can include a check or money order made payable to the “U.S. Treasury.” Write your Social Security number, the tax year, and “Form 4868” on the check to ensure it is applied correctly.