The beginning of the year means new starts, clean slates, and excitement for the year ahead. But the months from January to April also signify a less exciting thing for Americans: tax season. If your calendar has caught up to you, we’re here to help.
By filing IRS Form 4868, you can earn yourself a little extra time to file your annual federal tax return. Find out how to file Form 4868 by clicking on the links below or read end to end for an in-depth overview of what to expect when you file for an extension.
- What is IRS Form 4868?
- How Long is a 4868 Extension?
- Why File Form 4868?
- How Do I File for a Tax Extension?
- Do I Qualify For a Tax Extension?
- How Do I File Form 4868?
- What If I’m Out of the Country?
- How Do I Pay the Balance Due?
- What If I Still Can’t Pay the Balance Due?
- Why Choose Community Tax?
What is IRS Form 4868?
IRS Form 4868 is the tax extension form that needs to be filed in order for the IRS to approve you to file your taxes after the filing deadline.
IRS Form 4868 does not absolve you from late tax payment penalties, but it does grant you extra time to file without incurring late filing penalties.
Note: For 2019 taxes, the filing deadline is April 15, 2020.
How Long Is a 4868 Extension?
Form 4868 offers you an automatic six-month extension to file your federal income tax return. If you’re unprepared to pay the taxes you owe, filing a Form 4868 allows you to file later without accruing late-file penalties as long as you file by the extended deadline. However, taxpayers should keep in mind that they’re still subject to paying late payment penalties for paying their owed taxes after the deadline.
You don’t need to give a reason when you request an extension. Taxpayers can request an extension when they can’t pay taxes upfront or don’t have all of the necessary information to properly prepare their return.
Once you’ve submitted the IRS extension form, it’s in your best interest to get moving on your taxes ASAP, because if you miss the extended October 15, 2020 deadline, you’ll be on the hook for late filing penalties.
Why File Form 4868?
Failing to file your taxes on-time could cost you a late filing penalty of 5% of additional taxes owed for each month that your return is late, up to 25% of your total tax bill if you do not file the form for tax extension. And if you file more than 60 days late, you could face a minimum penalty of $210 or 100% of your unpaid taxes, in addition to taxes owed.
By submitting Form 4868, you can avoid paying late filing fees and get an extra six months to complete your annual tax return.
How Do I File a 4868 Extension?
Filing a tax extension is easy. The form is brief and doesn’t require a date or signature. You’ll have to provide your name, address, Social Security number, and if applicable, your spouse’s Social Security number.
You must also disclose your Individual Income Tax. Simply include a rough estimate of what your final taxes might be, and subtract this estimate from your total tax payments for the year. If your estimated balance is more than your total tax payments, you probably have owed taxes.
Do I Qualify For a Tax Extension?
You can earn more time to pay your taxes once you’ve estimated your tax liability using your W2 and any supporting documents. You must file Form 4868 by the regular deadline to qualify, and it has to include your total tax liability on line 4 of your form. Keep in mind that you’re still required to pay your taxes even with the extension, and you’ll accrue interest the longer you wait passed the regular due date.
How Do I File Form 4868?
You can receive an automatic extension to file and pay your taxes by filling out Form 4868 electronically. If you choose to apply electronically, don’t mail a paper copy. If you mail a paper copy, you can send any payment in advance through check or money order.
How to file Form 4868 electronically
You can file Form 4868 online using IRS e-file or with the help of a tax professional who uses IRS e-file.
Where to mail Form 4868
If you’d rather file a paper form, you can file Form 4868 by completing the form and mailing it to your local Internal Revenue Service Center found here.
What If I’m Out of the Country?
You may not need to file Tax Form 4868 if you’re out of the country. If you’re out of the country on the regular due date of your return, and you’re a U.S. citizen or resident, the IRS allows two extra months to file your tax return and pay the total amount due without an extension. If you delay payment, you’ll still be charged interest. If you file an extension after the two months provided, you’ll be issued an additional four months to pay what you owe. You qualify if:
- You live outside the U.S. and Puerto Rico and your main place of work is outside the country.
- You’re on active duty in the military or naval service outside of the U.S. and Puerto Rico.
- You can still qualify if you’re physically present in the country on the regular due date of the return.
How Do I Pay the Balance Due?
Keep in mind that even though you delay payment, you’ll still accrue interest(late payment fees). If you mail your request to the IRS, you can send as much payment as you want in the form of check or money order. Doing so will reduce the interest you accrue. E-filing allows you to pay digitally or by mail. If you decide to pay by mail, send a copy of your e-filed form with your amount. Should you pay electronically, you can pay directly from your bank account, your debit or credit card, or through the Electronic Federal Tax Payment System (EFTPS).
What If I Still Can’t Pay the Balance Due?
If you’re still unable to pay your taxes after the extension period ends, contact the tax experts at Community Tax for help. Our tax advocates have decades of experience helping thousands of individuals and businesses resolve tax debt issues. We can get you out of your tax dilemma and help you avoid financial pitfalls in the future. Our Certified Public Accountants, enrolled agents, and tax attorneys are prepared to take on almost any tax situation imaginable, and they want to help you reach your financial goals.
Community Tax experts have the ability to represent you before the IRS and get them to agree with a payment plan. Don’t wait until the IRS issues a levy on your account to take action. You can take back the power of your finances with a payment plan negotiated with one of our professionals, whether it be an installment agreement, an offer in compromise, penalty abatement, hardship resolution, or other payment plan.
Why Choose Community Tax?
Over 44,000 clients and counting have chosen Community Tax to resolve their debt with the IRS. Let us take a look at your tax forms and financial records, and we’ll find the best solution to help you get out and stay out of debt. Whether you want to file a tax extension or lift a wage garnishment, we can sit down with you to strategize a plan that works best for your financial needs.
Community Tax offers a variety of services to service your finances. If you’re the owner of a business, outsource your bookkeeping and accounting needs to us for fast and efficient service. Choose a package deal or pick from our á la carte services so you can tailor your own plan.
We are the trusted source for taxpayers who want to build a positive financial future. Whether you want to get out of tax debt or plan ahead for your child’s education, we can help you every step of the way with our expert financial advice. Our reputation for excellent service has earned us an “A+” rating from the Better Business Bureau and an accreditation from the Consumer Affairs Department. Reach out today and get a free consultation at 999.676.4319.