You can request an additional extension to file taxes beyond the six-month period, but you cannot request multiple tax extensions. An official U.S. Government website If you file Form 4868 electronically, make sure you have a copy of your return from the previous year; you will be required to provide the amount of your Adjusted Gross Income (AGI) for the previous year for verification purposes. Once you apply, you will receive an electronic acknowledgment that the IRS has accepted your submission.
Consult your tax software or tax professional for ways to file and pay electronically using electronic filing services. A number of companies offer free filing of Form 4868 through the Free File program. For additional information, see Publication 54, Tax Guide for the U.S. UU.
If you use this automatic 2-month extension, you must attach to your statement a statement explaining which of the two situations allow you to request the extension. You'll still have to pay interest on any taxes you haven't paid before your return's normal due date. You can also receive an additional 4-month extension to file your return (or a total of six months) if you file Form 4868 and check the box on line 8 to indicate that you need an additional 4 months to file your return. The additional period of 4 months is not an extension of the deadline to pay.
When filing a request for a tax extension using IRS Form 4868, the Internal Revenue Service (IRS) is asked to give you additional time to file your personal tax return. An important advantage is that an extension brings the filing deadline up by six months, from April to October. A major disadvantage, however, is that it doesn't give you additional time to pay any taxes you may owe on that return. Form 4868 is known as the automatic extension request for filing the application in the United States.
When you fill out the form, the IRS will automatically grant you a six-month tax extension (some companies only get a five-month extension). 401 (k) and Simple Solo plans must be established during the tax year, but in reality, plan funding can be done as late as the extended deadline of the previous tax year. If you need an extension for your state income tax return, you'll need to contact your state's tax authority to find out if you need to submit an additional form. A tax extension gives you an additional six months until October to file your federal tax return.
The statute of limitations for refunds is also extended by six months when requesting an extension, which can preserve taxpayers' ability to receive their federal tax refunds, even if they are late in filing their tax returns. For example, if you miscalculated and end up paying a tax bill, a tax extension will free you from the late filing penalty. However, the IRS allows you to recharacterize your Roth IRA to convert it to a traditional IRA at any time before you file your tax return, allowing you to avoid paying taxes on the balance. There is no penalty for requesting a tax extension, but you are expected to pay all taxes due before the day of tax filing.
In the case of late returns where taxes are due, the IRS imposes a penalty for not filing the return, which can reach up to 25% of the unpaid tax bill. There's an inevitable rush to finish tax returns before the April deadline, and both taxpayers and accountants can make tax filing mistakes when they're in a hurry and under pressure. Even if you get an extension to file your return, you must pay your income tax in full before the tax filing deadline. You can request an automatic six-month tax extension to extend the filing deadline for your federal tax return until October.
Taxpayers who care about prices can save money on tax preparation by moving tax preparation to a date when their accountant is less busy and charging them a lower commission. Sabrina Parys is a content management specialist in NerdWallet's tax and investment team, where she manages and writes content on personal income taxes.