Personal Income Tax Extensions

What Is a Tax Extension?
How to Get a Tax Extension
Personal Income Tax Extensions
Federal Tax Extensions
State Tax Extensions
Tax Extension Deadlines and Due Dates
Tax Extension Forms
How to File a Tax Extension
File Your Tax Extension Online
IRS Tax Extension Tips
The Benefits of a Tax Extension
How to E-File a Tax Extension
Tax Extension for Military
Free Tax Extensions

1. What Is a Tax Extension?

Need more time to file? File an IRS tax extension and you can wait until October 15th to file your income tax return, with no penalties whatsoever.

An IRS tax extension allows you to put-off tax day for six additional months. The IRS will gladly give you this extra time to file, even if you owe taxes. As long as you file your tax extension on or before the original filing deadline (typically April 15th) and then file your return by October 15th, you will not be penalized. Note that for 2012, the filing deadline for your tax return is April 17th.

It’s important to note that filing a tax extension is not a free pass to ignore your taxes. Rather, it’s an agreement with the IRS that you will file your taxes within the six extra months you’ve been granted. Once you file the extension, it’s recommended that you take the proper steps to file your actual return. Once October 15th rolls around, there is absolutely no delaying your taxes any further.

Also remember this: a tax extension only gives you more time to file, not more time to pay. If you owe taxes, you must still send your payment to the IRS by the original due date of your return. Keep this in mind when you are filing for a tax extension using IRS Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), because you must report any balance due in Part II of that form. Your payment should be submitted with your 4868 Tax Form ― otherwise, you will be charged interest on any amount that not paid by the original deadline.

Who Can Get a Tax Extension?

Almost everyone qualifies to file for an income tax extension. The IRS doesn’t ask you to submit any explanation as to why you want or need an extension. Almost all rejected extensions are the result of submitting incorrect information, such as a name or Social Security Number that does not match IRS records.

Any taxpayer who needs to file a Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) can do so. There is virtually no restriction when it comes to personal extensions for taxpayers. The IRS realizes that some people just can’t make the date and need more time to organize their financial documents.

The main caveat for successfully filing your tax extension is that the information needs to be correct. If anything is wrong on your application, then the IRS will reject your request. Also make sure that your information is up-to-date. If you submit old information (like an old address) then your tax extension request may be turned down.

It is easier to get a tax extension than many people believe. Once you know how to do it, you will be able to file for an extension any year that it is necessary.

2. How to Get a Tax Extension

It is easier to get a tax extension than many people believe. Once you know how to do it, you will be able to file for an extension anytime it is necessary. While it is not a good idea to rely on filing extensions every year, you never know when you are going to need a little bit extra time to file your tax return.

Before we go any further, it is important to remember this one important detail: a tax extension only gives you more time to file your return. It does not give you more time to pay any taxes that you might owe. Your payment must still be submitted by the original due date of your tax return.

If you need a tax extension, the following five steps will help you:

1. Determine whether or not you are going to owe more taxes.

If you are due a tax refund, the filing process is much less stressful because you don’t have to request extra time. On the other hand, if you owe additional money you will need to file a tax extension while also arranging to make a payment.

2. Obtain a copy of IRS Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).

This one-page form will help you get a six month automatic extension to file your taxes. You can call the IRS to request this form or print it out online. If you are working with a tax professional, they can supply you with a tax extension form as well as any others that you may need.

3. File Tax Form 4868 with the IRS.

Fill out Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) and submit it to the IRS by the due date, which is April 15th. Note that Form 4868 can be filed electronically or by paper mail.

4. Pay all or part of the income tax that you owe.

It would be in your best interest to pay in full, but sometimes this is not possible. Again, you are not buying yourself more time to pay your taxes when you file for a tax extension. The longer you wait to pay, the more you will owe in late fees.

5. File your tax return by the new due date.

Now that you have filed for a tax extension, your new deadline is October 15th of the same tax year. While six extra months may seem like a long time, you still shouldn’t want to wait until the last moment to file.

The IRS makes it easy to get a tax extension and does not require information on why you need more time to file. If you are interested in requesting an extension, the above steps can help guide you.

Who is Eligible for a Tax Extension?

Almost everyone qualifies to file for an income tax extension. The IRS doesn’t ask you to submit any explanation of why you want or need an extension. Almost all rejected extensions are the result of submitting incorrect information, such as a name and social security number that do not match IRS records.

Any taxpayer who needs to file a Form 4868 can do so. There is virtually no restriction when it comes to personal taxpayers. The IRS realizes that some people just can’t make the date and need more time for their taxes.

The main caveat for successfully filing your Form 4868 tax extension is the information needs to be correct. If anything is wrong on your file then the IRS will reject your form. Also make sure your information is up to date. If you submit old info like an old address then you may get a rejection letter from the IRS about your Form 4868 tax extension.

The Form 4868 tax extension is considered an “automatic.” That means that if you submit your form with the accurate information then the IRS will give you the extension you need without any fuss.

3. Personal Income Tax Extensions

Before you decide to file for a personal tax extension you need to be well aware of the rules and guidelines. It is important to know what the IRS is expecting from you, as well as what you get when you file for a tax extension.

Once you are familiar with the following information, you should be able to request an extension of time to file with little to no difficulty:

First things first, a tax extension must be filed by April 17, 2012. This is the original due date of the standard 1040 income tax form. If you miss this deadline without requesting a tax extension, the IRS will assume you are a delinquent taxpayer.

You should know well in advance if you are going to need a tax extension. Since filing for an extension is relatively easy, there is really no excuse for missing the April 17th deadline.

As you move forward, note that an extension gives you more time to file your tax return. A tax extension does not give you additional time to pay any taxes you owe. If you owe taxes, you need to send your payment to the IRS by April 17th to avoid a penalty.

If you realize that you need to file a tax extension, you must complete and submit Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) to the IRS. Once you’ve requested a tax extension, your return will be due six months after the original deadline, which is October 15, 2012.

If you need even more time to file, you can include a personal letter to the IRS explaining why you require more than a six month extension. If approved, you may be granted an additional two months which will make your tax return due by December 15th of the same year.

While filling out Tax Form 4868 you will need to provide personal information such as your Social Security number, address, and an estimate of the amount of tax that you owe. Since you are not filing a complete return, you can estimate your tax liability and then pay that amount.

If you are due a tax refund you do not need to file a tax extension. There is no penalty for filing late unless you owe the IRS additional money. To determine if you owe money or are due a tax refund, you will have to fill out some portions of your income tax return (i.e. Form 1040).

The IRS does not require taxpayers to explain or give reasons for their tax extension request. That being said, additional extensions are rare, though special rules may apply for taxpayers living outside the country or serving active military duty.

Requesting a Tax Extension

Obtain a copy of IRS Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). This one-page form will help you get a six month automatic extension to file your taxes. You can call the IRS to request this form or print it out online. If you are working with a tax professional, they can supply you with a tax extension form as well as any others that you may need.

Fill out Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) and submit it to the IRS by the due date, which is April 17, 2012. Note that Form 4868 can be filed electronically or by paper mail.

Reasons You May Need a Tax Extension

In some situations, a tax extension is absolutely necessary. However, some people file for an extension every year even if they don’t actually need one. While this is not a good habit, it is something that taxpayers are able to do.

If you are not in the United States when your tax return is due, you will probably need a tax extension. Not only can you get a six month extension, but the IRS may grant you two additional months if you explain your situation to them.

You never know when an emergency (personal or financial) will pop up and force you to drop everything else. If this happens during tax season, you should file a tax extension. It will give you six more months to file and, more importantly, you won’t have to worry about organizing your taxes during this difficult time of your life.

Are you having a difficult time finding all the receipts that you accumulated during the past year? Did you misplace your W-2 or 1099s? While you could rush to file your taxes with what you have, there is no good reason you should take that risk. Rushing through your tax return often leads to mistakes ― and those mistakes can be costly.

If you wait too long to schedule an appointment with your tax professional, you may find that he or she is booked up through April. Rather than filing your own return (which is risky if you don’t know what you’re doing), you can request a tax extension. When the madness of tax season dies down, you can then visit with your tax professional and take things from there.

To request a tax extension, fill out IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) and submit it to the IRS by April 17. Keep in mind that you must also send payment for any taxes due. Taxpayers may also file for an online tax extension at websites such as: FileLater.com.

Whether or not you apply for a tax extension is your decision. If you are facing any of the issues above, an extension may be just what you’re looking for. Remember, it is better to take advantage of a tax extension than to file and pay late.

4. Federal Tax Extensions

Need more time to file? File an IRS tax extension and you can wait until October 15th to file your income tax return, with no penalties whatsoever.

An IRS tax extension allows you to put-off tax day for six additional months. The IRS will gladly give you this extra time to file, even if you owe taxes. As long as you file your tax extension on or before the original filing deadline (April 17th for 2012) and then file your return by October 15th, you will not be penalized.

Who Can Get a Tax Extension?

Almost everyone qualifies to file for a federal income tax extension. The IRS doesn’t ask you to submit any explanation as to why you want or need an extension. Almost all rejected extensions are the result of submitting incorrect information, such as a name or Social Security Number that does not match IRS records.

Personal IRS Tax Extensions

You will need to obtain a copy of IRS Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). This one-page form will help you get a six month automatic extension to file your taxes. You can call the IRS to request this form or print it out online. If you are working with a tax professional, they can supply you with a tax extension form as well as any others that you may need.

Fill out Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) and submit it to the IRS by the due date (April 17, 2012). Note that Form 4868 can be filed electronically or by paper mail.

If you are due a tax refund you do not need to file a tax extension. There is no penalty for filing late unless you owe the IRS additional money. To determine if you owe

Business IRS Tax Extensions

Corporations, partnerships, REMICs, and certain trusts that need extra time to file may request a 5- or 6-month tax extension using IRS Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns). Note that this is only an extension of time to file and any tax owed must still be paid by the original due date.

IRS Tax Form 7004 is the Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. Form 7004 has three parts ― depending on the type of tax extension being requested, you must complete Part I or Part II, and everyone must complete Part III.

Corporations, including S-Corporations, operating on the calendar year for tax purposes must file for their tax extension by 11:59PM on the 15th day of the 3rd month following the close of their tax year (typically March 15). Partnerships, LLCs, and sole proprietorships have until 11:59PM on the due date of their personal income tax return (April 17 for the 2012 filing season) to file for their tax extension.

Corporations, multi-member LLCs, and partnerships operating on the calendar year for tax purposes are given an extended tax deadline of 5 months (generally to September 15). Sole proprietorships and single-member LLCs are given an extended due date of 6 months.

For most business types, you will simply need your Tax-ID number (EIN) to file your business tax extension (IRS Tax Form 7004). If you are filing for a single member LLC business, you should file for a personal tax extension (IRS Tax Form 4868) and use your Social Security Number, rather than a Tax-ID (EIN).

Single member LLCs only need to file for a personal tax extension (IRS Tax Form 4868), which will extend both the personal and business tax deadline, since your LLC is a "pass-through entity" and your business tax return is part of your 1040 personal tax return on Schedule C.

Sole proprietors have their business tax returns flow directly to their personal tax return as a Schedule C. Therefore, you should only submit a personal tax extension, which will extend the filing deadline for both your business as well as your personal income taxes.

5. State Tax Extensions

Getting a federal income tax extension for your federal income taxes is simple ― but what about your state income taxes? Can you get a tax extension from the state as well?

In general, it depends on which state you live and work in. Every state has different rules and regulations about personal taxes and tax extensions. Some states, like Texas and Tennessee, do not levy individual income taxes at all (although you may still owe taxes on business or investment income). Other states, like California and Massachusetts, have high personal taxes and business taxes ― so a state tax extension can be especially useful.

How Do State Income Tax Extensions Work?

Each state is different regarding their tax extension rules. For example, Colorado and California, automatically grant a six-month extension to any taxpayer and no paperwork is required. (Note however, similar to a federal tax extension, you must still pay any tax due by the original filing date).

Arizona is a state that will automatically accept an IRS tax extension if you don't owe taxes ― but you are required to fill out a state-specific tax form if you do owe taxes. Wisconsin, on the other hand, automatically grants a state tax extension if you file for the federal extension ― -provided that you attach IRS Form 4868 (personal tax extension) or IRS Form 7004 (business tax extension) to your Wisconsin tax return. Finally, Pennsylvania requires its residents to submit their tax extension requests by paper mail -- and Alabama allows its taxpayers to file their requests online.

For more information, visit our State Tax Extensions page: http://www.filelater.com/states-tax-extensions.html

6. Tax Extension Deadlines and Due Dates

If you are unable to prepare and file your federal income tax forms by the April 17, 2012 due date for the previous tax year, avoid paying a penalty by filing for a tax extension. Internal Revenue Service form 4868, “Application for Automatic Extension of Time to File U. S. Individual Income Tax Return” can be obtained, completed and filed by the April 17th deadline. This allows you a tax extension until October 15th of the same year in order to complete and file a return. If you are living overseas, the tax extension is through June 15th of the same year.

In the absence of the Application for Automatic Extension of Time to File U. S. Individual Income Tax Return (Tax Form 4868), interest will accrue at the rate of 5% per month on the unpaid taxes due up to a maximum of 25%. With an approved tax extension, this penalty is reduced to 0.5% per month and provided you make an estimated payment at the time you file for the tax extension, the interest is accrued only on the amount that you owe and remains unpaid.

If you opt to pay any estimated taxes due with a credit card, a 1.95% surcharge will be added. Estimating your taxes for the previous year (if you are self-employed and there has been no significant change to your income over the previous year and your family status, including dependents, remains the same) estimate the same amount of income taxes as the previous year when filling out the Tax Extension Form. For hourly and salaried employees, provided there are no significant changes in your dependents and income, estimate your taxes based on the previous year and review your W-2 Tax Form(s) to determine what has already been paid. Use these figures when completing your Tax Extension Form.

There are two types of penalties assessed if you do not file properly for a tax extension:

1) The first is the Failure to File Penalty ― assessed at 5% per month, up to 25% maximum on the amount of income tax due

2) The second is the Failure to Pay Penalty ― assessed at 0.5% per month, on the unpaid balance of the income tax you owe.

Whether or not you are able to pay by the due date, whether you file a tax extension of not, it is still important that you file your income tax return as soon as possible. It is a clear indicator to the Internal Revenue Service that you acknowledge that you owe the income taxes and are working towards paying what is due.

Second and Additional Tax Extensions

Up until tax year 2005, a taxpayer could file Tax Form 4868 and obtain a four-month automatic tax extension. An additional two month tax extension could be obtained by completing Tax Form 2688. However, effective with tax year 2005, the Internal Revenue Service modified Tax Form 4868, allowing the automatic six-month extension from the April deadline. With a tax extension, income tax returns are due on or before October 15th. There are no second tax extensions with the exception of the following instances:

1. Members of the Armed Forces serving in a combat zone or contingency operation are eligible for additional tax extensions of time up to six months. The tax extension begins once the deployment ends. Refer to Internal Revenue Service Publication 3 for details relative to information about this tax extension request.

2. Taxpayers who are U.S. Citizens or residents who live outside the United States and Puerto Rico may qualify for a second tax extension. The taxpayer falling into this classification must send a letter by the tax extension due date, October 15th, to obtain up to a two-month additional tax extension for filing their federal income tax return.

7. Tax Extension Forms

IRS Tax Form 4868

IRS Form 4868 is the Application for Automatic Extension of Time To File U.S. Income Tax Return.

If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Tax Form 4868 by the original due date for filing your tax return (April 17th for the 2012 filing season).

Form 4868 is a tax extension for individuals reporting their income to the IRS. This includes all taxpayers who file 1040s, contractors who file 1099s, as well as single member LLCs and Schedule C Sole Proprietors. Filing an individual tax extension will extend your tax deadline to October for the following tax returns:

Tax Form 1040
Tax Form 1040A
Tax Form 1040EZ
Tax Form 1040NR
Tax Form 1040NR-EZ

It’s important to note that submitting Form 4868 does not extend the time for payment of tax, which is still owed by the original due date of your return. You will need to give an estimate of your tax due when filing for a tax extension ― and you can pay none, all, or part of your estimated income tax due using a credit card or checking/savings account.

The IRS will accept corrections to tax extension requests within a certain time period.

Other Tax Extension Forms

Tax Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns)

Tax Form 1138 (Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback)

Tax Form 2350 (Application for Automatic Extension of Time to File U. S. Income Tax Return: For U.S. Citizens and Resident Aliens Abroad Who Expect to Qualify for Special Tax Treatment) ― foreign earned income tax exclusion and/or foreign housing tax exclusion or tax deduction.

Tax Form 4768 (Application for Extension of Time to File a Return and/or Pay U. S. Estate and Generation-Skipping Transfer Taxes)

Tax Form 5558 (Application for Extension of Time to File Certain Employee Plan Returns)

Tax Form 8809 (Application for Extension of Time to File Information Returns)

Tax Form 8868 (Application for Extension of Time to File Exempt Organization Return)

Tax Form 8892 (Application for Automation for Extension of Time to File Tax Form 709 and/or Payment of Gift or Generation-Skipping Transfer Tax)

8. How to File a Tax Extension

In order to obtain a tax extension for filing your income taxes, a taxpayer must complete and return the IRS Tax Form entitled “Application for Extension of Time to File U. S. Individual Income Tax Return” (Tax Form 4868). The form can either be completed online or by paper and mailed in, by April 17, 2012, to the IRS office that you would normally mail your income tax return to.

Tax Extension Form 4868 is quite simple to complete. Have your income tax return from the previous calendar year handy to estimate the amount of taxes you owe for the current year, provided your income hasn’t substantially changed and provided you still anticipate the same number of exemptions. Also, if you are an hourly or salaried employee, have your W-2 Form available for reference.

Part I of Tax Extension Form 4868 is basic information ― your name, your address, your Social Security Number (as well as the Social Security Number of your spouse, if you plan to file a joint tax return).

In Part II of Tax Extension Form 4868, you will need to estimate the total tax liability for the previous calendar year and enter that figure into the appropriate field. If you want to avoid paying any interest or penalties, estimate this figure a little higher than you anticipate.

Next, consult your W-2 form if you are an hourly or salaried employee and enter the amount of taxes you’ve already withheld for the preceding calendar year. If you are self-employed, enter the amount of taxes you’ve already paid in the preceding year. Then, simply subtract the amount of taxes already paid from the anticipated taxes owed ― the balance is the amount of income taxes you expect to owe for the previous year.

On the line immediately following “Balance Due” on the Tax Extension Form, enter the amount you will be including with the your Application for Extension of Time to File, whether all or part of the anticipated taxes owed.

The last couple of lines on Tax Extension Form 4868, Section II, ask whether you are a United States Citizen or resident and are living outside the U.S. or Puerto Rico at the time the income tax return is due. If you are out of the country when the time the income tax return is due, you do not need to file for a tax extension ― you are automatically granted until June 15th to file your tax return. However, if you complete Tax Extension Form 4868 and check the box indicating you are out of the country, you will be allowed a tax extension until October 15th.

The final entry in Section II of Tax Extension Form 4868 is for those individuals who normally file Tax Form 1040NR or Tax Form 1040NR-EZ and do not receive wages subject to U. S. income tax withholding.

9. File Your Tax Extension Online

If you need to file a tax extension, the best way to do so is to file it online. If you’re wondering where to go, we can help you on your search. Luckily, we have found an excellent place to go to file an electronic IRS tax extension form.

Using FileLater.com

Determined to make the process of filing your tax extension electronically as easy as possible, FileLater has streamlined the process. The great thing about this website is you can also use it to calculate your tax status.

Filing your tax extension electronically with FileLater will help if you owe money on your taxes. You can then use the service to also submit a payment to the IRS. This really cuts into the problem of them adding interest to your future payments. FileLater takes care of all this to save you time and headache.

If you own a business you can also use FileLater to file your business tax extension electronically. The process is much the same as personal taxes. They charge a little bit more as it is a little bit more complicated, but it can be worth it in the long run.

One of the best places to go to file tax extensions electronically is through FileLater. They can take all the irritation out of filing your forms and make sure everything is correct. This is important as any errors when you file tax extensions can mean big problems from the IRS!

One great thing about FileLater is they can help you with both personal and business tax extensions. While you could go through the IRS for some of these features, if you need to file tax extensions electronically and take care of other tax issues you’d be out of luck. On top of that, your business tax extensions would take much longer. With FileLater, much of the work is taken care of.

What Do I Need to E-File a Tax Extension?

You don’t need too much information to file a tax extension electronically. The main thing you’ll need is your personal information. This includes your name, address, and Social Security Number.

Now, you also need to calculate if you’ll be getting either a tax refund or if you will owe taxes. FileLater provides you with a handy tax calculator for this very purpose. Also, if you do in fact end up owing the IRS money, FileLater will show you how to make payments to avoid extra fees. You’ll do this after you file your tax extension electronically.

Do It Yourself?

If you’d rather do the work yourself, other websites will let you file your tax extension electronically. They will have the form right there handy for you to fill out. However, the main problem with these is you’ll have to figure out any tax you might owe by yourself before you file your tax extension electronically.

Some websites allow you can to download and print the tax extension form from their website. This is just in case you’d rather send it in through the mail instead of filing your tax extension electronically. However, it’s much easier to file it through a tax service like FileLater. It takes much less time and should be more secure.

Filing Your Personal Tax Extension Online

Are you ready to electronically submit your personal tax extension (IRS Tax Form 4868)online using the FileLater system, which will extend your filing deadline for six months (until October) for your income tax return (Form 1040, 1040A, or 1040EZ)?

Congratulations! You will give yourself until October to file your income taxes. This article explains the steps you will need to take to file a tax extension online with the IRS-approved FileLater system.

Step 1

The IRS requires that you provide some personal information in order to request a tax extension online. This includes your name, address, Social Security Number (or ITIN) ― and the same information for your spouse if you are married filing jointly. Tax forms (including W-2s, 1099s, and prior year returns) are not required to get a tax extension. Additionally, you can be confident that all of your data is kept secure and shared only with the IRS

Step 2

In order to get a tax extension, you must estimate whether you expect to owe taxes or get a tax refund. Don’t worry, this isn’t as complicated as it may sound. You can use FileLater’s helpful tax calculator to estimate your situation. Note that many taxpayers simply assume a similar tax situation to the previous year. If you expect to owe any tax, you will want to make a payment to avoid potential interest and late payment penalties assessed by the IRS. FileLater can also help you make a payment directly to the IRS via Electronic Funds Withdrawal (EFT) directly from your bank account.

Step 3

Once you submit your tax extension using FileLater, the system will immediately electronically file (e-file) Tax Form 4868 to the IRS for approval. Note that FileLater is an authorized IRS e-file provider, which means that your transaction and your information are completely secure.

That's all it takes! A few days after you submit your tax extension request, FileLater will send you a confirmation email notifying that your tax extension (Form 4868) has been approved by the IRS. If, for any reason, your tax extension request is denied, FileLater will tell you why ― and you can resubmit for free after making the necessary changes. Keep in mind, nearly all rejections are caused by mistakes (misspellings or Social Security Numbers that don’t match IRS records). As long as you submit your information accurately and on-time, your tax extension will likely be approved ― which is why the IRS calls it an “automatic extension.”

Reasons to File Your Tax Extension Online

Does it seem like the U.S. tax code is getting more and more complicated every year? If it feels like filing an income tax extension is more trouble than it's worth, think again ― you can file it online in just a few minutes.

Here are five reasons why you should e-file your tax extension:

1. E-Filing Your Tax Extension Is Paper-Free

Save a tree and save yourself the hassle of filling out paper tax forms by using FileLater's convenient e-filing system. No extra documents to deal with ― just a simple electronic form.

2. E-Filing Is the Only Way to Get IRS Confirmation That Your Tax Extension Has Been Approved

The FileLater system will keep track of your electronic tax extension request and inform you when it has been approved by the IRS. On the other hand, if you file a paper tax extension request (Form 4868 for individuals or Form 7004 for businesses), there’s no way of knowing whether your extension has been approved or not.

3. E-Filing a Tax Extension Is Fast and Easy

With FileLater, your tax extension form can be filled-out and submitted in just minutes. Individuals may receive an additional six months to file, while businesses may get 5 or 6 months. Requesting a tax extension can help relieve your April (or March) filing burden without breaking a sweat.

4. Electronic Filing Is the Preferred Method of the IRS

Everyone is going paperless these days, and the IRS is no exception. Over 80 million people filed their taxes electronically in 2007. FileLater is an authorized IRS e-file provider. With the FileLater system, you can securely e-file Form 4868 (or Form 7004) online. The IRS also recommends that taxpayers e-file their returns because it generally results in a faster tax refund.

5. With E-Filing, Nothing Gets Lost in the Mail

No more standing in line at the post office on tax day! When you e-file your tax extension request, you don't have to worry about it slipping through the cracks in the chaos of tax season. And by using FileLater, you will get an official IRS confirmation of your tax extension and you'll know that your tax forms are in good hands.

10. IRS Tax Extension Tips

Are you familiar with the tax extension process? Even if you don’t know the first thing about requesting an extension, learning how to do so is relatively easy. There are many tips you can follow to ensure that you receive a tax extension.

Tax Extension Tip #1

You must file for a tax extension using Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) and submit it by April 17th, 2012. You should know ahead of time if you are going to need a tax extension ― do not wait until the last minute to begin preparing your taxes.

Tax Extension Tip #2

You do not need to file for a tax extension if you are due a tax refund. There is no penalty for filing past the April 15th deadline unless you owe money to the IRS. That being said, just because you are owed a tax refund does not mean you should continue to put off filing your return. If you can file your taxes on time, you should. Also note that the longer you wait to file, the longer it will take to get your tax refund.

Tax Extension Tip #3

When filling out IRS Tax Form 4868, make sure that your personal information is completely accurate. Along with this, you will need to send payment for your estimated tax liability. If you are going to make a mistake, this is probably where it will happen. Many taxpayers fill out the form but forget to remit payment along with it.

Tax Extension Tip #4

A tax extension is going to buy you six more months to file your return, leading to a due date of October 15th. Again, this does not mean that you are getting a longer time to pay what you owe.

Tax Extension Tip #5

Do you need more than six months to get your documents together and file your tax return? If so, you can include a note with Form 4868 explaining your situation and requesting additional time to file. While the IRS is strict about giving additional tax extensions, special rules may apply for taxpayers living outside the country or serving active military duty. In those cases, you may be given two more months to file, which makes your return due on December 15th.

Tax Extension Tip #6

If you need an extension for your federal tax return, there is a good chance that you’ll also need an extension for your state tax return. State rules may vary, so make sure you check with your state’s department of revenue/taxation. They will be able to give you state-specific information about filing for a tax extension.

If you find yourself needing an extension of time to file, the above tips will help you get started while also avoiding common tax extension mistakes.

11. The Benefits of a Tax Extension

Every year, millions of people request tax extensions from the IRS. Some of them apply for an extension even though they don’t actually need one. Although it’s always recommended that you file your taxes on time, there are several benefits of getting a tax extension.

Here are some of the biggest advantages of obtaining a tax extension:

1. It gives you more time to get organized.

Despite the fact that most people are aware of the April 15th filing deadline (or April 17th for 2012), many taxpayers simply wait until the last minute to gather and organize the appropriate documents/information. Rather than rushing to file your return, a tax extension can give you six additional months to prepare your taxes, which should be more than enough time to get everything together.

2. There are no eligibility requirements.

The IRS does not ask taxpayers why they are requesting tax extensions – they will grant you six months automatically. If you just need more time to file, no matter your reason, a tax extension is the best way to get it.

3. A tax extension can help you avoid late penalties.

Remember this: an extension only gives you more time to file, not more time to pay. If you owe taxes, you must still send payment to the IRS by April 17, 2012 (the original due date for the 1040 tax return). Keep this in mind when you are filing for a tax extension using IRS Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), because you must report any balance due in Part II of that form. Your payment should be submitted with your 4868 Form ― you will owe interest on any amount that not paid by the due date of your return.

4. Avoid the chaos of tax season.

As you probably know from past experience, tax season can be hectic for everybody. With a tax extension, you can let April come and go without worry. And when things die down, you can begin to work on your tax return. Additionally, it is often much easier to make an appointment with your tax professional after the height of tax season is over.

Now that you are aware of the benefits of a tax extension, it is easier to understand why so many people rely on this option. Although you probably shouldn’t request an extension unless you need one, it is a relatively simple process. Once you send the proper form to the IRS, as well as any payment that is due, you will be granted six additional months to file. Just remember that the later you file your tax return, the later you will receive your tax refund.

12. Tax Extension Mistakes to Avoid

When it comes to requesting a tax extension from the IRS, you don’t have to worry about much. They will grant your request, without questions, as long as you follow the proper procedure. Despite the fact that obtaining a tax extension is so simple, many taxpayers make mistakes every year.

Below are several tax extension mistakes that you can avoid:

1. Thinking that a tax extension gives you the right to pay later as well.

With an extension you are being granted six more months to file your tax return. This does not mean that you also have more time to pay any tax you owe. You must still remit payment to the IRS by the original due date on your return (generally April 15th, or April 17th for the 2012 filing season). If you do not send payment to the IRS, they will begin to charge you both penalties and interest.

2. Believing that you don’t have to do anything in order to get a tax extension.

While the IRS is almost always guaranteed to grant you more time to file, they do require that you take some steps to begin the process and let them know. Most notably, you need to complete Tax Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). On this form, you must provide information about yourself and submit it with payment for any taxes that you owe.

3. Filing for a tax extension when you are due a refund.

Did you know that if you are owed a tax refund you don’t have to file for an extension? The IRS will automatically grant extensions to taxpayers who do not owe any taxes. Thus, filing Form 4868 would be a waste of time.

4. Assuming that you can get more than six months.

Some people think that they can file for an initial six-month extension and then add extra time to their extension in the future ― this is very rarely the case. The IRS may grant two additional months in particular situations, but this is usually only done for taxpayers who are out of the country or on active duty military service. A six-month extension shifts your filing deadline to October 15th (of that same year), which should give you plenty of time to complete and file your return.

The tax extension process is relatively straight forward and easy to follow. That being said, many taxpayers have gotten confused and made the above errors. As long as you avoid these common mistakes, you should be able to receive a tax extension without any problems.

Common Tax Extension Pitfalls

The first and foremost consideration when filing for a tax extension is to understand that the extension allows for the later filing of the Federal Income Tax Return, it does not allow for late payment of the taxes due without interest or penalties which are incurred from the April due date. The estimated taxes due must be calculated and paid when filing for the tax extension.

Remember though, that the penalties for filing late are much more than the penalties for paying late, so by all means, if you need to file for a tax extension to prepare your tax return, do so by the April 15th deadline and give yourself some breathing room and a chance to review all opportunities to reduce the amount of taxes due either by qualifying tax deductions or tax credits.

One disadvantage to filing for a tax extension is that once the April deadlinhe passes, you are no longer able to file your Federal Income Tax Return electronically. It must be completed and sent through the U. S. Postal Service or some other ground service means.

The IRS will notify you when they receive your Federal Income Tax Return, however, they don’t always notify you when you file your Tax Extension Form 4868. ALWAYS make a copy of any tax documentation you prepare and send.

Filing for that tax extension also relieves any angst and stress related to rushing to collect documents, finding an auditor or tax professional available to assist with your tax preparation, or actually preparing the tax forms yourself. However, the downside is that you still have to make time to gather up and prepare for filing your Federal Income Tax Return by the October 15th deadline. Don’t put it aside and figure you’ll cross that bridge in the future ― else you’ll be in the same boat you were when you opted to file for the tax extension ― rushing to meet the filing deadline!

Remember too, that contributions to qualifying retirement plans, that can be itemized and deducted from your adjusted gross income (AGI), have to be made before the April deadline in order to qualify for the preceding tax year. This holds true whether or not you file for a tax extension.

Additionally, as you’re preparing to apply for a tax extension, estimate the amount of taxes you owe that year, and if in doubt, pay a little more than you think you owe. Pay the estimated taxes due when you file for the tax extension. If you overpay, you will receive a tax refund. Interest is charged from the April due date on any unpaid taxes due the Internal Revenue Service and they will collect!

13. Tax Extension for Military

For our Brothers (and Sisters) in Arms ,there are special tax extension allowances relative to the filing of their federal income tax returns. The Internal Revenue Service provides a special Publication for our Armed Forces personnel, Publication 3 (Armed Forces Tax Guide).

Military and Naval Personnel who are stationed outside the United States or Puerto Rico at the time their income tax return is due (typically April 15th) are granted an automatic two month tax extension to file their income tax return, provided that the location was a combat zone or a contingency operation area. A contingency operation is initiated by the Secretary of Defense and calls on reservists or inactive members of the armed forces for active duty or retains current active members of the armed forces for active duty during a war or national emergency as declared by the President or Congress.

Missing Status also constitutes active duty in a combat zone or contingency operation area and is also entitled to a tax extension.

Taxpayers who are employed in a combat zone or contingency operation area who serve the needs of the U. S. Armed Forces, including Red Cross personnel, certain correspondents and civilians employed in support of the U. S. Armed Forces also qualify for tax extensions.

Additionally, spouses of those members of the U. S. Armed Forces serving in a combat zone or contingency area also qualify for the same tax extensions provided that the combat zone or contingency operation area has not been inactive for 2 years from the beginning of that tax period and/or the qualifying spouse is not hospitalized in the U. S. for injuries sustained in the combat zone or contingency operation area.

The length of the tax extension is 180 days from the last day that you are in a combat zone or contingency operation area or from the last day of any hospitalization (up to 5 years) resulting from injuries sustained in a combat zone or contingency operation area, the 180 days commencing from the latest occurring of the two examples.

Your tax extension may be further extended beyond the 180 days, by the length of time you had for filing your income tax return for the preceding year while you were in a combat zone or contingency operation area.

The provision for tax extensions from the deadline also include provisions for the following:

Filing a tax form for any income tax, estate tax, gift tax, employment tax, or excise tax
Paying any income tax, estate tax, gift tax, employment tax, or excise tax
Filing for a claim or tax refund of any tax
Collection by the IRS of any taxes due
Making a qualifying retirement contribution to an IRA
Assessment of any tax by the IRS

Tax Extensions for Active Military Personnel

In recognition of their service, military personnel are given more flexible rules regarding income tax filing and payment. If you are a member of the U.S. military, the IRS will allow you to postpone the time for taking care of certain tax matters.

There are several things you should know about tax extensions.

Tax Extensions for Overseas Deployment

If you are serving overseas during tax filing season, you are automatically granted a 2-month tax extension ― with no paperwork required and no tax payments or penalties assessed. If you need more than two months to file your return, you can e-file IRS Form 4868 online using the FileLater system and get an income tax extension until October.

This tax extension is designed for personnel serving in non-combat areas. If you are deployed in a combat zone, or you move to a combat zone (from a non-combat area) while overseas, see the section below.

Tax Extensions for Combat Zone Service

If you are currently serving in the U.S. military or you have recently served in a combat zone, you have additional options for tax extensions. You are allowed a tax extension that is equivalent to the following:

The amount of time you serve in a combat zone before taxes are due
Any time you spent continually hospitalized due to injuries sustained in a combat zone (up to 5 years)
180 days in addition to the two time periods listed above

This extension includes the time for tax preparation you would have had if you weren't serving overseas. For example, if you deployed on March 1, you would earn a 226-day tax extension (180 days for the automatic extension, plus the 46 days between March 1 and April 15).

During the tax extension period, no penalties or interest will be assessed on your taxes. This extension applies to any and all taxes due ― whether from income, investments, capital gains, or other sources.

It’s important to remember that a military tax extension applies only to your time served directly in a combat zone. If you are initially deployed to a non-combat area and then moved to a combat zone, your tax extension will only be calculated from the date you arrive in the combat zone.

Tax Deadlines That Can Be Extended

The military deadline extension provision applies to a variety of IRS procedures, including the following actions:

Filing any return of income tax, estate tax, gift tax, employment tax, or excise tax
Paying any income tax, estate tax, gift tax, employment tax, or excise tax
Filing a petition with the Tax Court for redetermination of a deficiency, or for review of a Tax Court decision
Filing a claim for credit or refund of any tax
Bringing suit for any claim for credit or refund
Making a qualified retirement contribution to an IRA
Allowing a credit or refund of any tax by the IRS
Assessment of any tax by the IRS
Giving or making any notice or demand by the IRS for the payment of any tax, or for any liability for any tax
Collection by the IRS of any tax due
Bringing suit by the United States for any tax due

If the IRS takes any of the above actions covered by the military provision, or sends you a notice of examination before learning that you qualify for a tax extension, contact your legal assistance office. You will not be charged any penalties or interest for failure to file a return or pay taxes during your extension period. For more information regarding military personnel, see IRS Publication 3 (Armed Forces’ Guide).

Second and Additional Tax Extensions

Up until tax year 2005, a taxpayer could file Tax Form 4868 and obtain a four-month automatic tax extension. An additional 2 month tax extension could be obtained by completing Tax Form 2688. However, effective with tax year 2005, the Internal Revenue Service modified Tax Form 4868, allowing an automatic six-month extension from the April 15th deadline. With a tax extension, income tax returns are due on or before October 15th. There are no second tax extensions with the exception of the following instances:

14. Free Tax Extensions

Get a Free Tax Extension with FileLater

To request your tax extension for FREE using the FileLater system, simply follow the three steps outlined below:

Step 1

You can skip the “account creation” and begin your tax extension request right away by logging onto FileLater using Facebook Connect.

Step 2

Before you submit your tax extension request, choose (at least) five of your Facebook friends to receive notifications that FileLater has just e-filed your tax extension to the IRS.

Step 3

Congratulations! That’s all it takes. Now your tax filing deadline has been extended (to October) for free. And thanks to you, your friends will also know how get tax extensions and be stress-free in April.

Prepare and File Your Own Tax Extension with IRS FreeFile

According to the official IRS website, you may use Traditional Free File and Free File Fillable Forms to prepare and e-file a Federal tax extension with the IRS.

Make sure to file your tax extension request (Form 4868) by the original filing deadline, which is usually April 15th (or April 17th for 2012).

Before you can complete and e-file an extension (Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return), you must first start one of the 1040 forms. Be sure to complete the personal information on the 1040 form, including your name, address and Security Social Number.

On the fillable form, select "File an Extension", in the upper right hand corner and complete Form 4868.

To activate the “e-file” button for filing an extension, complete all the questions (as a part of Step 2) that apply to you. Input the following:

Email address (in both boxes to validate) -- make sure both email addresses match exactly
Prior year Adjusted Gross Income (AGI), prior year PIN or Electronic Filing PIN number
Current year PIN
Date of birth
Current date
Make sure that the disclosure statement checkbox is checked
If filing status is “married filing joint” then spouse information must be completed
Spouse’s prior year AGI, prior year PIN or Electronic Filing PIN number
Spouse current year PIN
Spouse date of birth

If using Direct Debit all of the following must be entered:

Routing number
Bank account number
Debit date
Type of account
Electronic Withdrawal disclosure checkbox

Get an extra six months to file your taxes. File an individual tax extension or a business tax extension with FileLater - the online leader in tax extensions.

FileLater is an official IRS e-file provider (view us on IRS.gov ) and is a Better Business Bureau accredited business.