How to Fill Out IRS Form 4868

Navigate Your Tax Extensions with Form 4868: A Complete Guide

Tax season can be daunting, especially when unexpected events hinder timely filing. Fortunately, the IRS offers tax extensions, allowing taxpayers additional time to prepare and submit their returns. This guide explores the essentials of filing a tax extension using Form 4868, ensuring compliance and avoiding penalties.

Key Takeaways

Automatic Six-Month Extension: Submitting Form 4868 grants an automatic six-month extension to file your federal income tax return.
Extension to File, Not to Pay: Any owed taxes must still be paid by the original deadline to avoid penalties.
Multiple Submission Methods: File electronically or via mail, with electronic filing offering faster confirmation.

Understanding Form 4868

Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return,” grants taxpayers an automatic six-month extension, shifting the April 15 deadline to October 15.

Important Consideration: This extension applies only to filing, not to tax payments, which remain due by April 15.

Who Should Consider Filing an Extension?

Incomplete Documentation: Awaiting essential tax documents, such as Schedule K-1s or Form 1099s.
Complex Financial Situations: Business transactions or investments requiring additional reporting time.
Unexpected Life Events: Health issues or personal emergencies impeding timely filing.

How to File Form 4868

Electronic Filing (E-File): Use IRS Free File or authorized e-file providers for fast and convenient submission.
Payment with Extension: Paying taxes through IRS Direct Pay or EFTPS automatically requests an extension.
Paper Filing: Mail a completed Form 4868 postmarked by the deadline. Mailing addresses vary by location.

For more details, visit FileLater.

Special Considerations for Taxpayers Abroad

U.S. citizens abroad automatically receive a two-month extension to June 15. Filing Form 4868 extends the deadline to October 15, but interest accrues from April 15.

Consequences of Late Filing and Payment

Failure to file by April 15 may result in a 5% monthly penalty (up to 25%). Failure to pay results in a 0.5% monthly penalty.

Practical Steps to Ensure Compliance

Estimate Your Tax Liability: A reasonable estimate is required on Form 4868.
Maintain Documentation: Keep records of tax documents and proof of extension filing.
Stay Informed: Visit the IRS website or consult a tax professional for updates.

Frequently Asked Questions

Q: Does filing Form 4868 extend the time to pay taxes?

A: No, it only extends the filing deadline. Taxes are still due by April 15.

Q: Can I file Form 4868 electronically?

A: Yes, through IRS Free File or authorized tax software providers.

Q: What happens if I miss the deadline?

A: You may face penalties, including a 5% failure-to-file penalty and interest on unpaid taxes.

IRS Form 4868: What It Is & How to File for a Personal Tax Extension

What is IRS Form 4868?

IRS Form 4868, officially titled “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return”, grants taxpayers an additional six months to file their tax return. This extension helps reduce stress by giving more time to prepare an accurate return.

Can I file Form 4868 electronically?

Yes, you can e-file using authorized tax software, such as FileLater’s Tax Extension e-File Service, which provides immediate confirmation of receipt and typically receives IRS approval of extensions in less than five minutes. E-filing is recommended for peace of mind and quick processing.

Alternatively, you can file Form 4868 by printing the form, filling it out, addressing and stamping an envelope, and mailing it via USPS. However, mailed filings do not confirm receipt or if approved.

Do I need to provide a reason for requesting a tax extension?

No, the IRS does not require a reason for filing Form 4868. The extension is automatically granted as long as the form is submitted on time.

Will filing a tax extension increase my chances of being audited?

No, requesting an extension does not trigger an audit. The IRS treats extensions as a routine part of the filing process.

Can my tax extension be denied?

In most cases, Form 4868 is automatically approved when e-filed. However, if you mail a paper form with errors or missing information, the IRS may reject your extension. If this happens, you should file your tax return as soon as possible to avoid penalties.

Key Benefits of IRS Form 4868

Automatic Six‐Month Extension: By filing Form 4868, you receive an automatic six‐month extension to submit your individual income tax return, moving the deadline from April 15 to October 15.
Extension to File, Not to Pay: It’s crucial to understand that while the form extends your filing deadline, it does not extend the time to pay any taxes owed.
Flexible Submission Options: You have the option to file Form 4868 electronically or by mail, offering flexibility in how you manage your tax responsibilities.

Understanding IRS Form 4868

Form 4868 is specifically designed for individuals who require additional time to complete their federal income tax returns. By submitting this form, you gain an automatic extension, allowing you to file your return by October 15 instead of the usual April 15 deadline. However, this extension only applies to filing your return—not to paying any taxes you owe. To avoid interest and penalties, you should estimate and pay any tax liability by the original due date.

Who Should Consider Filing Form 4868?

Several scenarios might prompt taxpayers to seek an extension:

Incomplete Documentation: If you’re missing essential tax documents, such as W-2s (Wage and Tax Statements) or 1099s (Miscellaneous Income), and need extra time to gather them.
Complex Financial Situations: Taxpayers with intricate financial circumstances, including investments, multiple income streams, or significant life changes, may require additional time for accurate reporting.
Unexpected Life Events: Unforeseen events like illness, family emergencies, or natural disasters can impede your ability to file on time.

Consider Jane, a small business owner who recently expanded her operations. With multiple income streams and new investments, she finds herself overwhelmed by the complexity of her tax situation. By filing Form 4868, Jane gains the extra time she needs to ensure her return is accurate and complete, allowing her to focus on her business without the added stress of looming tax deadlines.

How to File Form 4868?

Filing Form 4868 is a straightforward process:

Estimate Your Tax Liability: Use available information to make a reasonable estimate of your total tax liability for the year.
Complete the Form: Enter your personal information and the estimated tax liability on Form 4868.
Submit the Form: You can file electronically using IRS e-file or a free file option, or mail a paper form to the appropriate IRS address. Electronic filing is recommended for faster processing and confirmation.

Important Considerations

Payment Obligations: While Form 4868 extends your filing deadline, it does not extend the time to pay any taxes due. To avoid interest and penalties, pay the estimated tax owed by the original filing deadline.
Confirmation of Extension: The IRS will only contact you if your extension request is denied. Otherwise, you can assume the extension is granted upon submission.
State Tax Returns: An approved federal extension does not automatically apply to state tax returns. Check with your state’s tax authority to determine if a separate extension is required.

Embracing the Opportunity for a Stress-Free Tax Season

Filing Form 4868 can be a lifesaver if you need extra time to complete your tax return accurately. However, remember that while this extension grants you additional time to file, it does not extend the time to pay any taxes owed. To avoid unnecessary penalties and interest, estimate your tax liability and make any necessary payments by the original deadline.

By planning ahead and taking advantage of the extension when necessary, you can ensure a stress-free and organized tax season. Whether you need extra time due to complex financial circumstances or unexpected life events, Form 4868 provides the flexibility to manage your tax obligations responsibly.

What to Do After You’ve Filed an Income Tax Extension

Now that you’ve gotten extra months to file your taxes by doing an online tax extension with FileLater you might be curious what happens next. With the extra time our team has addressed some of the most common tax extension questions.

How do I know the IRS received my tax extension and that it was approved?

If you filed your tax extension online with FileLater you can expect to receive a confirmation email from FileLater within 24 hours of filing the extension. Know that you can also always review the status of your extension by logging into your FileLater account.

Know that FileLater will let you know when your tax extension has been submitted and accepted. In some cases the IRS will reject a tax extension if some of the information is not correct. FileLater will also notify you if this happens and help you make the changes to your tax extension for resubmittal.

It’s also important to know that extensions only extend the amount of time you have to file your taxes. They do not push back the deadline required to pay any taxes owed. If you think you will owe taxes you are still required to send an estimated payment to the IRS by the regular tax deadline along with an extension. You’ll want to do this to avoid paying any penalties or interest later.

What can I do if I filed an extension but didn’t send an estimated payment?

If you were not ready to file your taxes and went with an extension it is important to know you are required to send your estimated tax payment to the IRS as soon as possible. Failing to do so could lead to paying penalties and interest. To get help estimating your taxes, use IRS.com.

Can I e-file my tax return to the IRS after the filing date in April?

Yes. You can complete and efile your tax return, often for FREE depending on your tax situation at 1040.com.

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. You can also file IRS Form 4868 (by June 15th) to request an additional 4-month 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. Missing Status also constitutes active duty in a combat zone or contingency operation area and is also entitled to a tax extension.

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 such an area or operation. Additionally, spouses of those members of the U. S. Armed Forces serving in a combat zone or contingency area may qualify for the same tax extensions, with a few exceptions.

The provision for military tax extensions 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.

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:

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.

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:

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). If you do not send payment to the IRS, they will begin to charge you both penalties and interest.
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.
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.
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 due date of April 15th. 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 April 15th 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 15th 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 April 15th on any unpaid taxes due the Internal Revenue Service and they will collect!

How to E-File a Tax Extension

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.

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 15. Note that Form 4868 can be filed electronically or by paper mail.

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.

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.

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:

It gives you more time to get organized. Despite the fact that most people are aware of the April 15th filing deadline, 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.
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.
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 15th (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 (April 15).
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 15th 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.

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 15th. 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.

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:

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.
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.
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.
Electronic Filing Is the Preferred Method of the IRS. Everyone is going paperless these days, and the IRS is no exception. Over 120 million people filed their taxes electronically last year. 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.
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.

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 be completed online, or you can use a paper form and mail it to the appropriate IRS office by April 15th (see list of addresses on Page 4 of Form 4868).

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, April 15th, you do not need to file for a tax extension ― you are automatically granted 2 extra months 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.