Taxes are due tomorrow. Here's how to file for an extension

With the federal tax deadline looming tomorrow, millions of Americans are scurrying to get their documents in order and file their income tax returns. However, for various reasons, some taxpayers may find it difficult to meet this deadline. This article discusses how to file for an extension if you are unable to submit your tax returns on time.

The Internal Revenue Service (IRS) understands that life can sometimes get in the way of tax filing, hence it provides an option for taxpayers to request an extension to file their federal tax return. This extension pushes the deadline to October 15, providing an additional six months to gather, prepare and file your taxes. However, it’s crucial to note that an extension to file is not an extension to pay. If you expect to owe money, you should estimate your tax liability and pay the amount by the regular due date.

So, how do you go about filing for an extension?

1. File Electronically: One of the simplest ways to file for an extension is to do it electronically. You can do this through various tax software platforms, including those offered by the IRS. The Free File link on the IRS.gov website offers access to several software options that can guide you through the extension filing process. Once you submit your request electronically, you will receive an electronic acknowledgment that the IRS has received it.

2. Use Form 4868: If you prefer the traditional paper-based method, you can fill out Form 4868, titled “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return”. This form can be downloaded from the IRS website. After you fill it out, mail it to the IRS along with your estimated tax payment.

3. Pay Electronically: When you choose to pay some or all of your estimated income tax due, the IRS will automatically provide you with a filing extension, without you having to fill out Form 4868. You can pay online, by phone, or with the IRS2Go app. The IRS uses the information on the payment to automatically create an extension for you.

While the process of filing for an extension is relatively straightforward, there are a few important points to note.

Firstly, remember that an extension gives you extra time to file your tax return, not to pay your taxes. Interest and penalties will still apply to unpaid taxes after the original April deadline. Therefore, try to pay as much as you can by the original due date to minimize penalties and interest.

Secondly, if you are expecting a refund, an extension isn’t necessary. The IRS doesn’t penalize taxpayers for filing late if they’re due to receive refunds. However, if you’re unsure whether you’re due a refund or you’ll owe money, it’s safer to file for an extension.

Lastly, if you’re living or traveling outside the U.S., you’re allowed an automatic two-month extension to file your return and pay any amount due without needing to request an extension. However, interest will still be charged on any unpaid tax from the original deadline.

In conclusion, the process of filing for an extension should be used as a last resort and not as a crutch for procrastination. Remember, the sooner you file your return and pay any outstanding balance, the sooner you can put tax season behind you.

Sources: Internal Revenue Service, TurboTax, H&R Block.