How to get an extension

If you can’t file your tax return by April 15th, you can get a 4 month extension of the deadline. Complete Form 4768, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, and file it with the IRS before April 15th.

You will automatically get until August 15th to file your return without incurring late filing penalties. If you want even more time, you can request a second extension by filing Form 2688, Application for Additional Extension of Time to File U.S. Individual Income Tax Return. You must file this form before August 15th and have a good reason. If the second extension is granted, you will have until October 15th to file your return.

Beware, an extension does not extend your time to pay taxes due. If you owe the IRS include your estimated tax payment with your extension request. If you don’t pay at least 90% of your tax bill by April 15th, you’ll get hit with penalties and interest for the underpaid amount once you do file. The penalty starts at 0.5% per month and can go up to 1% per month of the amount you owe.

If you don’t request an extension

If you don’t file your return by April 15th or file a request for an extension, the IRS can impose a penalty of 5% per month of the taxes due up to a maximum of 25%. The IRS will also charge you interest on the taxes owed.

If you can’t pay what you owe

If you can’t pay all that you owe the IRS, you must file the return and send what you can afford. The penalty for not filing is much worse than the penalty for not paying after you file. The penalty for not filing can go up to 25% while the penalty for not paying is only 0.5% per month of the taxes you owe. A partial payment will reduce the penalty amount.

Contributed by JD at 5:02 pm under Tax matters.