Tax season can feel overwhelming, especially if you need more time to file your return. An extension can help—but it’s important to understand what it does and doesn’t cover. Here’s what you need to know:
What Does a Tax Extension Do?
- Gives you extra time to file: Filing Form 4868 extends your deadline to submit your tax return by six months (usually until October 15).
- Does NOT give extra time to pay: Any taxes you owe are still due by the regular deadline (April 15).
What happens if I don’t by April 15th?
If you don’t pay by April 15, you’ll face:
- Failure-to-Pay Penalty: 0.5% of unpaid taxes per month.
- Interest: Accrues daily until the balance is paid.
- If you don’t file at all, the Failure-to-File Penalty is much higher—5% per month.
What If You Can’t Pay All the Tax You Owe?
- Estimate your tax liability and pay as much as you can by April 15.
- Installment agreements if you can’t pay in full
How do I file a request for an extension?
- Pay all or part of your estimated income tax due and indicate that the payment is for an extension of time to file your return using IRS Direct Pay, Online account, EFTPS: The Electronic Federal Tax Payment System, a debit or credit card or a digital wallet, such as Click to Pay, PayPal and Venmo. You’ll receive a confirmation number for your records.
- E-file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return using your personal computer or through a tax professional who uses e-file.
- File a paper Form 4868. Note: Fiscal year taxpayers may request extensions only by filing a paper Form 4868.
Tips:
- File the extension even if you can’t pay everything—it avoids the bigger failure-to-file penalty.
- Keep records of your payment and extension confirmation.
- Plan ahead for October—don’t wait until the last minute to complete your return.
There are many reasons for filing an extension. Many have nothing to do with taxes due. Contact your CPA today to discuss your personal tax situation.
As always, consult your trusted tax professional!