So you’ve heard something about IRS Form 4868 (more commonly known as a tax extension), but you don’t know anything about it. The good news is that, compared to other tax forms, this one is pretty straight forward. The bad news is that it is still a tax form, so there are still ways to get confused. Hopefully this post will answer all of your questions.
Official Name for Form 4868
Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
What’s the purpose of the form?
Form 4868 is used to apply for 6 more months (4 if “out of the country” and a U.S. citizen or resident) to file Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.
How do I qualify for a tax extension?
This is way easier than you can even imagine. To get an extension, all you have to do is:
1. Properly estimate your 2008 tax liability using the information available to you,
2. Enter your total tax liability on line 4 of Form 4868, and
3. File Form 4868 by the regular due date of your return.
According to the IRS, although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. If you do not pay the amount due by the regular due date, you will owe interest. You may also be charged penalties.
Here’s the best part: you do not have to explain why you are asking for the extension. The IRS will only contact you only if your request is denied.
Do not file Form 4868 if you want the IRS to figure your tax or you are under a court order to file your return by the regular due date.
When do I file a tax extension?
File Form 4868 by April 15. Those of you that are fiscal year taxpayers (and this is pretty rare) must file Form 4868 by the regular due date of the return.
What if I am out of the country on April 15?
If you are out of the country and a U.S. citizen or resident, you are allowed 2 extra months to file your return and pay any amount due without requesting an extension. For a calendar year return, this is June 15. File Form 4868 and be sure to check the box on line 8 if you need an additional 4 months to file your return.
If you are out of the country and a U.S. citizen or resident, you may qualify for special tax treatment if you meet the foreign residence or presence tests. If you do not expect to meet either of those tests by the due date of your return, request an extension to a date after you expect to qualify using Form 2350, Application for Extension of Time To File U.S. Income Tax Return.
You are out of the country if:
If you qualify as being out of the country, you will still be eligible for the extension even if you are physically present in the United States or Puerto Rico on the regular due date of the return.
For more information on extensions for taxpayers out of the country, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
3 ways to request an automatic extension of time to file a U.S. individual income tax return.
1. You can file Form 4868 electronically by accessing IRS e-file using your home computer or by using a tax professional who uses e-file.
2. You can pay all or part of your estimate of income tax due using a credit card.
3. You can file a paper Form 4868.
What is e-file?
IRS e-file is the IRS’s electronic filing program. You can get an automatic extension of time to file your tax return by filing Form 4868 electronically. You will receive an electronic acknowledgment once you complete the transaction. Keep it with your records.
