Tax season can be hectic, and sometimes life doesn’t go according to schedule. If you’re not quite ready to file your tax return by the April deadline, the IRS allows you to request an extension. While a tax extension can offer some breathing room, it’s important to understand what it does—and what it doesn’t—do.
Here’s a simple breakdown of how to file for a tax extension and what it really means for your tax obligations.
What Is a Tax Extension?
A tax extension gives you an additional six months to file your federal income tax return. For most taxpayers, that means the deadline moves from April 15 to October 15. However, an extension to file is not an extension to pay. If you owe taxes, the IRS still expects payment by the original April deadline.
Why File an Extension?
There are several valid reasons why individuals or businesses may need more time to file:
- You’re waiting on important tax documents or corrected forms
- You need additional time to organize complex finances
- You’ve experienced a personal hardship or emergency
- You want to ensure accuracy and avoid errors that could lead to an audit
Whatever the reason, filing for an extension is better than rushing and making mistakes—or worse, missing the deadline entirely.
How to File for a Tax Extension
Filing for an extension is relatively simple, and you have a few options:
1. File IRS Form 4868
Form 4868 is the official request for an automatic extension for individual taxpayers. You can file it electronically through tax software, your tax professional, or by mailing a paper copy to the IRS.
To complete the form, you’ll need to:
- Estimate your total tax liability for the year
- Report how much you’ve already paid
- Indicate the balance due (if any)
Even if you can’t pay in full, submitting this form by the deadline avoids the late-filing penalty.
2. Make a Payment with Extension Request
If you make a payment to the IRS using Direct Pay or through the Electronic Federal Tax Payment System (EFTPS), and designate it as an extension payment, the IRS will automatically treat it as a request for extension—no separate form required.
3. Businesses File Form 7004
If you’re filing a business return and need an extension, use Form 7004. This applies to partnerships, corporations, and other business entities.
What Happens After You File an Extension?
Once your extension is accepted, you’ll have until October 15 to submit your complete return. During this time, you can gather any missing documents, consult with your CPA, and make sure everything is filed correctly.
However, interest and penalties will still accrue on any unpaid taxes after the original deadline. That’s why it’s always recommended to pay as much as you can by April 15—even if you’re filing for an extension.
What If You Don’t File or Pay?
Failing to file your return or request an extension by the deadline can lead to:
- A failure-to-file penalty (typically 5% per month on unpaid taxes)
- A failure-to-pay penalty (0.5% per month)
- Accruing interest on the unpaid balance
These penalties can add up quickly, so it’s better to file for an extension and pay something rather than miss the deadline entirely.
Need Help Filing an Extension?
If you’re unsure how much you owe, need help submitting the proper forms, or simply want peace of mind that everything is handled correctly, working with a CPA can make the process smoother. We help individuals and businesses navigate tax deadlines, extensions, and everything in between.
Contact our office today to discuss your situation. Whether you need to file now or need more time, we’re here to guide you through every step.