Form 4868 is used by the citizens of the US who wish to apply for an extension to file the tax return. The taxpayers usually receive a maximum of six months ‘ extension, while those who are living outside the country receive a four-month extension in addition to the two months they already receive. Filing the form 4868 does not permit late payment of taxes owed; the payments are still due on the tax deadline date, and the late payment will incur penalties and interest.
Contents
What is Form 4868?
Form 4868 is basically an application for the automatic extension of time to file the Income Tax Return. This form is for individuals who are planning to extend the amount of time they have to file their tax returns. The individual can file the extension of their taxes electronically, by mail, or by submitting the IRS Form 4868 with the IRS. It should be done before the last day for filing taxes.
As per the official site, “A U.S citizen or resident files this form to request an automatic extension of time to file a U.S individual income tax return.”
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Filing the extension for your taxes provides you with an additional month to prepare your income tax return, no matter what reason you need the extra time. Filing the tax extension will only provide you with more time to finish the paperwork; it will not offer you the extra time to pay your tax bill. Depending on your residency, the US tax deadline can change.
To help better understand the differences, you can look at the table below to get more details regarding the tax extensions for filing and paying the taxes.
| Category | Living Outside the US | Living in the US |
| Form used for extension | Form 4868 | Form 4868 |
| Automatic Extension | 2 months (automatically to June 15) | April 15 (before extension) |
| Filing Deadline | June 15th (if additional time is needed) | April 15th (before extension) |
| Payment Deadline | Must pay the taxes owed by April 15th | Must pay taxes owed by April 15th |
| Extension Applies to | Filing only | Filing only |
How to File a Tax Extension with Form 4868: Overview
| Article on | How to File a Tax Extension with Form 4868 |
| Country | USA |
| Department | Internal Revenue Service |
| Form | Form 4868 |
| Recipient | Taxpayers |
| Official site | irs.gov |
Who Must File Form 4868?
For the people who have complex tax cases, filing the extension for the October 15th deadline can be beneficial. Form 4868 is used frequently by investors, self-employed individuals, taxpayers, and business owners who are undergoing significant life changes, such as U.S. expats.
As per the official site, “Form 4868 doesn’t extend the time to pay taxes. If you don’t pay the amount due by the regular due date, you’ll owe interest.”
Even if you think that you do not need an extension, filing Form 4868 helps ensure that you have the additional time to be free of certain penalties. Whether you require an extension or not, filing can help in safeguarding that you have the flexibility and the peace of mind.
Is there a penalty for filing a federal tax extension?
There is no penalty for filing the tax extension; however, if you are not paying the amount on time, it may cost you.
- If the individual does not pay the full amount that they owe, then the IRS department will charge interest on the unpaid tax balance till the time they pay the full amount.
- If the individual does not pay at least 90%, then they might be subject to the late payment penalty. The penalty is generally half of 1% of the amount that is payable for every month up to a maximum of 25%.
Once you file the extension, you have to wait till October 15 to collect all the documents and to finish your filing. If you have completed the return, then you have to include the amount that you have paid already in the payment section of your Form 1040.
How to file Form 4868?
The Form 4868 can be filed either electronically or by paper filing.
The individual who wants the extension should file the Form 4868 on or before the due date for the actual tax return to be filed. If the due date falls on a federal holiday or a weekend, then the filing deadline will be the next business day. Filing Form 4868 for the 2024 tax year will extend the filing deadline till October 15, 2025.
Electronic filing or E-filing
The E-filing extension Form 4868 helps provide you with a lot of benefits. Even the IRS recommends Electronic filing as the process is quick, and you will get the instant status of your return. To file the Form 4868 electronically, you can use an e-file service provider. You can simply enter the required information, calculate the balance that is due, and transmit the return to the IRS.
Paper filing
You can also file the Form 4868 manually by filling out the form and sending it through the postal service. If you are paper-filing, then you have to ensure that you are sending the return earlier before the deadline, as it can sometimes take time to reach the authorities.
Although there are two filing options available for taxpayers to file the extension, the IRS recommends filing the Form 4868 electronically as it is a simple, easy, and less time-consuming process compared to the paper filing.
FAQs
Is there an automatic extension for US citizens who are living outside the country?
If an individual is living outside the US on April 15, then they will automatically get the additional two months until June 15, 2025, to file the return.
What is the difference between the 4868 and an extension?
The IRS department provides an automatic extension that will give you additional time to file your taxes as long as you file Form 4868 before the deadline.
Is it a good idea to file an extension?
Filing an extension gives you the extra time to gather everything that you need to file a complete and accurate return.
Why would an extension get rejected?
If you have entered any details incorrectly, then there is a chance that your extension can be rejected.
What happens if I fail to file an extension?
If the individual fails to file the extension and they owe tax, then you may face the failure to file penalty.