Understanding the Importance of IRS Extension Form 4868

IRS Extension Form 4868

The IRS expects its citizens to file their returns and pay their taxes within the stipulated time. However, if, for some reason, they are not able to file their federal income tax return on time, they can seek more time from the IRS through Form 4868. This IRS extension Form 4868 offers the applicant a six-month additional time to file the US individual income tax returns. This extension, however, does not extend the time to pay the taxes with the IRS. It only extends the deadline to fill out the Form and to submit the paperwork.

Key Reasons for Filing IRS Extension Form 4868

The IRS extension form 4868 gives taxpayers a six-month automation extension to file their federal income tax returns. This extension Form will delay the tax filing date from 15 April to 15 October of the tax year. Those who require a time extension should submit Form 4868 within the deadline of the original tax return due date. Some of the reasons to request an extension with the IRS are as follows.

  • By filing the IRS extension Form 4868 within the due date of the original tax return Form, taxpayers can avoid all types of late filing penalties.
  • This extension form can help avoid IRS penalties. The IRS generally levies a late filing penalty of 5% of the amount due for each month if the return has missed the April filing deadline. For returns that are more than 60 days late, a minimum penalty of $485 is levied by the IRS. Form 4868 avoids these penalties.
  • Other reasons why taxpayers require additional time to file their returns are,
    • Missing Schedule K-1 from the trust, for which the taxpayer is one of the beneficiaries
    • Self-employed individuals might require additional time to set up and fund an employee pension retirement plan.
    • Taxpayers living or working out of the country may require more time to file their returns.

Citizens may use IRS extension Form 4868 to request extensions for Form 1040, the US individual tax return. Form 1040 SR, the US tax return for seniors; Form 1040 NR, the non-resident alien income tax return. Form 1040 PR, the self-employment tax return; Puerto Rico; and Form 1040-SS, the US self-employment tax return.

Information Required on Extension Form 4868

In order to fill and complete the IRS extension form 4868, taxpayers would require the following information.

  • Name and address
  • Social security number
  • Social security number of the spouse
  • Estimate of the final taxes of the taxpayer

Filing IRS extension form 4868 does not give the taxpayers more time to pay their taxes; their tax payment will still be due on the original deadline, which is generally the 15th of April of the tax year. While submitting Form 4868 with the IRS, the taxpayers should also send the payment of the estimated tax balance. The IRS also allows taxpayers to skip filling out Form 4868 entirely if they pay their estimated tax due online or through Direct Pay, Debit cards, or Credit cards, which indicates that the payment is for the extension.

Avoiding Penalties with Form 4868

The IRS expects its taxpayers to file their returns within the deadline, even if they cannot pay their complete tax bill. Taxpayers who owe taxes and do not file the returns on time may be charged for failing to file a penalty by the IRS. This penalty is generally 5% of the tax owed for each month or part of the month for which the tax return is late. If the individual taxpayer owes the taxes to the IRS and is not able to pay in full by the deadline, they should.

  • File their tax return or request an extension of time to file the returns by the April 18th deadline.
  • File Form 4868 through their tax professional and submit an electronic payment of taxes along with IRS extension form 4868.
  • Pay as much as possible of their tax bill within the April 18 due date
  • Set up their payment plan as soon as possible if they are not able to pay their taxes in full by the 18th of April.

Who can Benefit From IRS Form 4868?

Any US citizen looking for an automatic extension to file the US individual income tax return can file the IRS extension Form 4868. By filing this form, taxpayers will get an automatic six-month extension to file their returns.

Also, US citizens and residents who are out of the country for personal and work-related reasons during the due date can take advantage of this provision to report their taxes. Filing this tax Form will offer an additional four months time to the taxpayer living out of the country. Filing this tax Form with the IRS allows an additional time period of four months to the taxpayer to file their returns. The IRS qualifies those who fulfill the following criteria as those living out of the US.

  • Living and working outside the US and Puerto Rico
  • People serving in the navy and military outside the US and Puerto Rico.

Common Misconceptions About Tax Extension

A very common misconception among the citizens of the United States is that filing a tax extension will increase their chances of an audit. But the truth is that opting to file tax extensions will offer more time for the taxpayer to calculate his finances, and this actually mitigates the chances of an audit. This is because the taxpayer can make use of this time to plan and file their tax return to prevent audits.

Another misconception about tax extension is that filing an IRS extension form 4868 offers more time to pay the taxes. But the six-month extension is not for paying the taxes owed. It only buys additional time to file the tax return. If the taxpayer doesn’t understand this distinction, he might invite severe penalties from the IRS, owing to unpaid taxes that get accrued after the tax filing deadline. The extension is only for the paperwork and not for the taxes owed.

Some taxpayers think that the IRS offers extensions only in extreme cases and in serious hardships on the side of the taxpayer. But this is not true. The IRS offers tax extensions for everyone, irrespective of the reason behind their extension request. It is better to seek professional help while dealing with extensions and other complex taxing solutions as they will offer insightful advice on preparing and filing tax returns and tax extensions.

A Step-By-Step Guide to Complete IRS Form 4868 with Tax2efile

Tax2efile is an authorized E-filing service provider from the IRS that is equipped with the latest tools, technology, and expert minds to deliver the needs of the customers. Choosing to file your IRS extension form 4868 with Tax2efile has a number of advantages. Their professional experts will completely estimate the individual income tax liability using the information given by the user and will file the tax Form by the regular due date of the individual tax return. In order to file Form 4868 through Tax2efile, the taxpayers should gather all the information such as their,

  • Personal information – name, social security number, and address.
  • Name of the spouse, if the information filing is to be done jointly
  • Tax liability owed to the IRS and payment information.
The step-by-step guide to complete filing the 4868 tax extension Form with the IRS is as follows
  • The taxpayer should first create their own free account at the Tax2efile portal.
  • Tax2efile helps with the e-filing of many different tax forms of the IRS, So the user has to select Form 4868 extension from the drop-down menu.
  • The next step is to estimate the total tax liability and the total payments owed to the IRS.; the tax professionals at Tax2efile will help with this step.
  • The next step is to review the tax Form thoroughly and submit the same to the IRS.
  • When choosing to file tax Forms through Tax2file, taxpayers will quickly receive an email confirmation and status updates from the IRS.

This process will get an automatic time extension of six months or more to file the tax returns with the IRS. The IRS also states that all the taxes owed should be paid on or before 15th April, so along with filing the tax extension form, the taxpayer should submit the taxes to the IRS. This helps to prevent penalties that go up to 25% of the taxes owed.

Streamline Your Tax Filing Process with Tax2efile

Understanding the complex tax extension forms and related taxing documents involves careful planning and strategic foresight. It is important to embrace technology for seamless tax filings and to seek professional help in filing tax forms and extensions on time. The experts at Tax2efile are available round the clock to help taxpayers with all their queries and doubts concerning tax extensions. Taxpayers can now file their tax forms and get help from experts on the go with the help of the Tax2efile app. This app is available on iPhones, Android devices, and also on iPads.