- September 29, 2023
If you are not able to file your income tax return within the filing deadline, then you can request the IRS for a tax extension. You have to submit IRS Form 4868 to apply for the extension. But filing this Form will not entitle the taxpayer to any relaxation in paying the taxes. It only gives additional time to submit the paperwork and does not extend the time of payment of taxes.
About Form 4868:
The IRS tax Form 4868 gives taxpayers an automatic six-month extension to file their federal tax returns. The federal income tax return is due on April 15th, by filing Form 4868, taxpayers can get an extension till October 15th. But to enjoy this extension, the taxpayers should submit Form 4868 within the deadline, which is April 15th of the tax year. Filing this extension doesn’t guarantee more time to pay the tax. Not paying the federal taxes within the deadline will incur penalties and additional interest on the principal payment.
Understanding IRS tax Form 4868:
Some taxpayers require additional time extension to file their tax payments if they haven’t got all the information to prepare their returns. In such instances, they can file an extension to avoid late filing penalties. The late filing penalty of the income returns is about 5% of the amount due every month. If the returns are filed later than 60 days of the due date, then the minimum penalty is $435, or the balance is due.
Filing an extension doesn’t mean the taxpayers are exempt from paying the interest with late payment of taxes. If they file an extension and pay the taxes beyond the due date, they still have to pay penalties on the tax amount. In some states within the United States, filing the federal tax extension Form entitles the taxpayer to an automatic extension of the state income tax filing as well. Also, those who live abroad, are given a two-month automatic filing extension time by the IRS. But if they still need more time, they can file Form 4868 and check box 8 on the Form, indicating ‘out of the country’. This will entitle them to an additional four months for tax payments.
Form 4868 filing instructions:
Form 4868 is only a half-page Form, that doesn’t require a date or signature. There is no need to state the reason for requesting the extension in this Form. Part I of the IRS tax Form reports the personal details of the taxpayer. They have to enter their name, address, and social security number. If applicable, they should enter the spouse’s social security number.
Part II of the form asks for the estimate of the final taxes of the taxpayer. This is the amount after subtracting the total tax payments for the year. If the taxpayer feels they owe taxes, they have to pay the balance tax with this Form.
Bottom Line:
In conclusion, IRS Form 4868 provides taxpayers with a crucial lifeline when they can’t meet the tax filing deadline. It offers an automatic six-month extension to file federal tax returns, shifting the due date from April 15th to October 15th. However, it’s important to note that this extension only pertains to filing paperwork, not to paying taxes. Taxes must still be paid by the original deadline, or penalties and interest may be incurred. This form can be a valuable tool for those who need extra time to gather their financial information and avoid late filing penalties. It’s a relatively straightforward process, with minimal requirements for completion, making it a useful resource for many taxpayers.
