If you are required to file a federal income tax return and for any reason want more time beyond the April filing deadline, you can get an extension just by asking for it. The request is made by filling out an Internal Revenue Service (IRS) extension form, known officially as Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. 

Key Takeaways

  • Form 4868 gives taxpayers a six-month extension, for any reason, to file federal income tax returns.
  • In order to get an extension, you need to fill out the form no later than the original due date of the return.
  • Filing the IRS extension form generally doesn’t give you more time to pay your taxes if you owe—but for 2019 taxes, due Ap. 15, 2020, payments of unpaid taxes have been extended for 90 days.
  • Once taxes are due, you’ll be on the hook for interest and penalties on unpaid taxes, which begin to accrue on the original—or extended—due date, even if you file for an extension.

Understanding Form 4868

Form 4868 gives you an automatic six-month extension to file your federal income tax return. The extension for 2019 federal income tax returns that are due on April 15, 2020, gives you until Oct. 15, 2020.

You may want an extension if you have not yet received all the necessary information to prepare your return—for example, you haven't received a Schedule K-1 from a trust in which you are a beneficiary or because the chaos of the COVID-19 crisis is making it difficult to organize your taxes.

If you are self-employed, there is an added benefit to obtaining a filing extension. It gives you until the extended due date to set up and fund a simplified employee pension (SEP) retirement plan.

By obtaining the extension, you avoid any late-filing penalties as long as you do file by the extended due date. If you don't, you face a late filing penalty of 5% of the amount due for each month or part of the month your return is late. If your return is more than 60 days late, the minimum penalty is $330 or the balance due, whichever is smaller.

It's important to keep in mind that filing an extension does not generally mean you are off the hook for paying taxes due by the April deadline. You'll owe interest and potential penalties if you pay late, even if you file an IRS extension form. But 2019 tax payments have been given a 90-day extension, so you have more time to pay them. This more time, however, is 90 days, not Oct. 15, when your filed tax papers are due when you file for an extension.

Depending on your state, filing the federal form may also give you an automatic extension for state income tax purposes.

Who Can File Form 4868?

Taxpayers who want more time for any reason to file federal income tax returns can use Form 4868. You can file the form when you need an extension for a variety of returns in the 1040 series including:

  • Form 1040: U.S. Individual Tax Return
  • Form 1040-SR: U.S. Tax Return for Seniors
  • Form 1040NR: U.S. Nonresident Alien Income Tax Return
  • Form 1040-NR-EZ: U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
  • Form 1040-PR: Self-Employment Tax Return-Puerto Rico
  • Form 1040-SS: U.S. Self-Employment Tax Return

How to File Form 4868

A 4868 form is relatively straightforward to fill out. It is half a page and does not require any date or signature. You don't have to give a reason for requesting an extension. All you have to provide is:

  • Information about you: This is done in Part I: Identification. Include your name, address, Social Security number and, if applicable, your spouse's Social Security number.
  • Information about your income taxes: This is done in Part II: Individual Income Tax. Provide a good faith estimate of what you think your final taxes will be. Subtract from this your total tax payments for the year from withholding and any estimated taxes. If your estimated tax liability for the year is greater than your total tax payments, you have a balance due.
Form 4868

All pages of Form 4868 are available on the IRS website.

If you show a balance due you can make a payment as described below. You aren't required to make a payment as a condition of obtaining a filing extension.

For the extension to be effective, you must make your request no later than the original due date of the return. No filing extension can be granted after the April deadline. An IRS extension form can be submitted on paper to the address in the instructions for the form or filed electronically. 

All versions of Form 4868 are available on the IRS website.

If You Owe Taxes

Obtaining a filing extension does not give you more time to pay your taxes. Due to the COVID-19 crisis, payments on taxes were extended 90 days. Interest and penalties on unpaid taxes begin to accrue after the 90 days , even if you obtain a filing extension until Oct. 15. In normal years, your payment would be due on on the original due date, April 15.

If you submit a paper Form 4868 to the IRS, you can send in a payment of some or all of the balance due. The more you pay, the less your interest and penalties will be. Instructions on the form tell you where to send it, along with your payment.

If you file Form 4868 electronically but want to send a payment by mail, send a copy of the e-filed form along with your check. The form acts as your voucher in this case so your check will be credited properly to your tax account.

If you file your form electronically, you can also make an electronic payment via:

  • Direct Pay, which is a transfer from your bank account to the IRS with no fees. 
  • Electronic Federal Tax Payment System (EFTPS), which is another free payment system. It requires registration.
  • Credit or debit card through an IRS-approved payment processor. This method entails a small convenience fee charged by the processor⁠—a flat fee for debit card transactions or a percentage of the taxes for credit card transactions.

The IRS also offers the option to pay by phone through EFTPS by calling 800-555-3453.

The IRS will also allow you to skip filling out a 4868 form entirely if you pay all or part of your estimated income tax due online or by phone using Direct Pay, EFTPS, or a credit or debit card and indicate that the payment is for an extension. It will provide confirmation of the extension if you take this route.

Special Considerations for U.S. Taxpayers Abroad

A two-month filing extension is automatically given to a U.S. citizen or resident who lives outside of the U.S. or Puerto Rico, or whose main place of work is outside the U.S. or Puerto Rico, or who is in the military or naval service on duty outside the U.S. or Puerto Rico. For the 2019 tax year, a return is not due until June 15, 2020 for these taxpayers. They do not have to request the two-month extension.

However, if these individuals want even more time, they must complete Form 4868 and check the box on Line 8 indicating they are "out of the country." By doing this, there is an additional four months to file without any late-filing penalty.

The two-month automatic extension does not apply to someone on vacation outside the U.S. Anyone anticipating being away on the filing deadline and who needs more time to file should submit Form 4868 before going away, or have a tax preparer submit the form.

Nonresidents filing Form 1040-NR or 1040NR-EZ who cannot file by the due date should also file Form 4868 to obtain a filing extension. However, the same two-month automatic extension applies if the person did not receive any wages subject to U.S. income tax withholding. These individuals must check the box on Line 9 of Form 4868 to indicate that this scenario applies.

The Bottom Line

If you can't file your federal income tax return on time, simply ask for a filing extension. If you don't, you'll face a late filing penalty. You may be able to escape penalties by showing reasonable cause, but why go through the bother? Fill out an IRS extension form before the filing deadline. And don't forget that if you owe taxes, they are still due by the April deadline (extended 90 days for 2019 taxes, as described above).