Can I Request a Tax Extension?

Tax season can sneak up on you, leaving you with little time to file your federal income tax forms. When you are having trouble filling out tax forms or need extra time to put your financial records in order, you may need to file for a tax extension. In fact, the IRS allows you to file for an automatic, six-month extension without incurring interest and penalties.

But the extension does not exempt you from paying any taxes you owe by the original filing deadline. When you file for an extension, you must estimate your tax liability and make a payment by tax day. You may have to pay interest on any additional taxes you owe. For legal advice about your individual income tax issues, find an experienced tax lawyer near you for help. 

What Is a Tax Extension?

Most taxpayers can get an automatic extension for an additional six months to file their federal income tax return. This gives you until October 15 to file your taxes for the prior tax year.

You have to request the extension by tax day, typically April 15. However, it may be within a few days later if tax day falls on a Saturday, Sunday, or holiday.

If you fail to file and don’t request an extension by the tax filing deadline, the IRS can hit you with a late filing penalty.

If you request an extension of time to file your federal tax return, the payment date is still April 15. However, you will have until October 15 to file your taxes if you get a federal extension.

If you are living outside the U.S., you may have additional time to file your federal income taxes. U.S. citizens and others living outside the country have until June 15 to file their taxes without needing to request a filing extension. Members of the military serving in combat zones generally have an additional 180 days after the end of their active service to file and pay their income taxes.

How Can I Request a Tax Extension?

You have until tax day to request an extension. If you don’t file your taxes or request an extension in time, you can face failure to file penalties. There are three ways to make an income tax extension request:

• Pay your estimated tax due and indicate the payment is for an extension
• E-file IRS Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
• File a paper extension form 4868 and mail it by the tax date

You can electronically file for an extension using tax software or your tax professional.

Most taxpayers can request a six-month extension. However, the IRS generally does not grant any additional extensions beyond the first six months.

Do You Need to Request a State Tax Extension?

You may also need time to file your state tax return. Each state has its own process for getting a tax filing extension. Some states have an automatic extension for filing. The extension period generally matches the six-month federal extension. This can give you until October 15 to file your state return. Check with your state tax authority for the extension requirements.

Does an Extension Give You More Time to Pay Your Taxes?

An extension to file is not an extension to pay your taxes. Your taxes are still due by the tax deadline. An extension to file only applies to filing your taxes. If you don’t pay your taxes by the tax filing due date, you can face additional penalties and interest.

However, you may not know how much you need to pay until you file your taxes. You must estimate how much you will owe and get that payment in by tax day. If you overpay, you can get a tax refund when you do file your taxes. If you underpay, you may have to pay the additional tax plus any interest. A significant underpayment comes with additional tax penalties. In short, the extension is not a way to save money.

What Happens if You File Your Taxes Late?

Filing your taxes past the deadline can lead to financial penalties. The penalties can depend on when you filed and if you failed to make your tax payments. There are separate penalties for failure to file and failure to pay your taxes.

The late payment penalties for both failure to file and failure to pay can be up to 25% of your unpaid taxes if you take long enough to pay. This is in addition to interest, which is compounded daily for late tax payments.

If you can’t afford to pay your taxes, contact the IRS as soon as possible. You may be able to request a payment plan to reduce the tax penalties.

What Happens if I Get a Notice From the IRS?

A notice from the IRS doesn’t necessarily mean you did anything wrong. The IRS may just have questions about your tax filing or payments. You may be able to resolve any issues with a letter or phone call. If you receive notice of an audit, investigation, or an allegation that you failed to file even though you requested an extension, you should contact an experienced tax law attorney.