An
Extension is a way to ask the IRS for
more time to file your tax return.
The deadline to file
your return is April 15. Form 4868 will
extend the deadline by six months to
October 15.
An extension does not
extend your time to pay. If you don't
pay at least 90% of the tax by April 15,
a
late-payment penalty will apply, 5% per
month up to a maximum penalty of 25% of
the balance due.
Need an even easier way
to file your extension and pay your
taxes?
Pay your tax using your
credit card and file your Form 4868 all
at the same time. There are two
IRS-approved credit card services.
Both companies charge
a 2.49% convenience fee for using their
service.
3.You can also file
your extension using tax preparation
software such as H&R Block TaxCut,
TaxAct, and TurboTax.
The Form 4868 provides
an automatic 6-month extension but, you can get an automatic 2-month extension if
you reside outside the U.S. during
filing time.
Why file an extension?
The
combined penalties for late-filing and
late-payment can be as much as 47.5%.
If you don't file your return on time, both the late-filing and
late-payment penalties apply. If both
penalties apply, a penalty of up to 25%
of the balance due will be charged in
the first 5 months. The 0.5% failure to
pay penalty will continue to apply for
up to 45 more months. Interest on
the unpaid balance and accrued penalty
will continue to be charged until the
balance due is paid.
