How To File A Tax Extension

How To File For An Extension
A tax extension must be filed by the tax deadline (this year's is April 17) but will effectively push back the deadline to send in your actual return. HOWEVER, this does NOT mean you delay payment. In order to file an extension, you must send in part or all of your estimated income tax.

This payment can either be mailed in (and must be postmarked by April 17) or it can be paid electronically by credit card or bank withdrawal.

Additionally, you must complete Form 4868 (.pdf) which can be obtained from any tax preparation provider. The IRS recommends that most people send in their Form 4868 electronically as the IRS will acknowledge receipt of the form.

One downside to filing for an extension is that you must pay interest on any tax you owe, but did not pay by the April deadline. Additionally, if you did not pay at least 90% of your tax liability by the April deadline, then you will be assessed a late payment penalty.

The main thing to remember is that you should pay what you can by the April deadline. Do not file an extension if your return is completed, but you cannot pay the entire tax payment yet. If you send in what you can and on time, the IRS will bill you later for the rest of your tax balance due.