If you do not have everything ready for filing by the due date, you have several options to consider:
- File for an Extension: You can request an automatic extension of time to file your tax return by submitting Form 4868, "Application for Automatic Extension of Time to File U.S. Individual Tax Return." This form must be filed by the original due date of your return, which is generally April 15. An extension of time to file is not an extension of time to pay any taxes due.
- Automatic Extensions for Specific Circumstances:
- Automatic 2-Month Extension: If you are a U.S. citizen or resident alien living outside the United States and Puerto Rico, or if you are in military or naval service on duty outside the United States and Puerto Rico, you are allowed an automatic 2-month extension to file your return and pay federal income tax. This extension moves the due date to June 15.
- Additional 4-Month Extension: If you cannot file your return within the automatic 2-month extension period, you can request an additional 4 months to file your return, for a total of 6 months. This request must be made by the new due date allowed by the 2-month extension.
- Interest and Penalties:
- Interest: If you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid.
- Failure-to-File Penalty: If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25% of the unpaid tax.
- Failure-to-Pay Penalty: If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of 0.5% of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25% of your unpaid taxes.
- Payment of Tax: Even if you file for an extension, you should estimate and pay any additional tax you owe by the original due date to avoid being charged a late payment penalty. The late-payment penalty applies if you paid less than 90% of your actual tax liability by the original due date of your income tax return.
- Reasonable Cause: You may not have to pay the failure-to-file or failure-to-pay penalties if you can show that you had a good reason for not filing or paying on time.
By taking these steps, you can avoid or minimize penalties and interest, even if you are not ready to file your tax return by the due date.
Sources:
Publication 1380
Publication 54 (2023)
Publication 516 (11/2018)
Publication 17 (2023)
Publication 1518 (11/2012)
Publication 3452
