What happens if I file form 4868 late?

The tax filers of the United States can use Form 4868, to avail automatic extension of time to file the individual income tax return. By filling out this Form, the citizens can avail time extension only for the paperwork. It is important to note that filing Form 4868 does not entitle late payment of taxes. They should pay the tax amount they owe to the IRS, well within the deadline. 

What if I file Form 4868 late?

Form 4868 entitles the taxpayers to submit their tax Forms late to the IRS. By filling out this Form, taxpayers will get a maximum of a 6-month extension. Citizens who are out of the country are given two months’ additional time without Form 4868, to file returns and pay taxes. Filing this Form with granting them an additional four months for the taxpayers living out of the country. Filing Form 4868 renders extension only for papery work and not for tax payments. Citizens should complete all their tax payments within the deadline. Else, they have to pay the penalties and the applicable interests. 

You should file this federal tax extension by April 18th, 2022 for this tax year. This is the same day as the deadline to file the 2021 tax return.  Thus, if you owe the taxes and if you have missed the deadline to e-file an extension, then you should e-file your tax returns now. This helps in avoiding penalties, interest, and additional fees. 

If you miss the date to file the extension, you will no longer be able to file an extension. You should prepare the tax return past the deadline and pay the tax along with the penalty. After the IRS accepts the tax return, you can make changes to your filing through Form 1040X. So, if you want to file a tax return, do it now. And your new deadline to e-file your 2021 tax return will be October 17th, 2022. 

On what grounds will IRS reject the tax extensions?

Generally, the IRS will reject Form 4868 if there are any mistakes in the details. If the IRS is not accepting the form, then it is equivalent to not filing the Form, and the consequences follow. In case of rejection, the best option is to start over and perform the 2021 tax return again. If you are getting a tax refund, then there is no penalty for filing late. But, if you owe taxes to the IRS, then it is important to file the tax extension immediately to avoid penalties. 

Bottom Line:

The only way to avoid mistakes in the tax Form and to avoid late filing penalties is to e-file the tax return. Late filing penalties are higher than the late payment penalties with the IRS. Thus, you should file a tax return or a tax extension within the deadline, through credible tax service providers like tax2efile. Please feel free to contact our tax expert today, who can assist you with your tax extension and all relevant queries.