Online IRS Tax Extension Tips
File online electronically to avoid errors. If you have a refund coming, you'll get it much faster than you will filing the old-fashioned way by snail mail.
Don't forget to account for payments you need to make. Taxpayers that owe additional taxes to the IRS are supposed to pay a good-faith estimate of their taxes due. If you don't, it will most likely result in penalties.
Don't forget to credit payments made when you prepare your taxes. The IRS will refund any overpayment, but you will have to wait for that refund.
If you didn't pay the full amount you owed when you filed for your extension, you will in fact owe more money because of interest that has been accumulating on the balance along with possible late payment penalties.Personal Extension IRS Form 4868
Single Member LLCs
Schedule C Sole Proprietorships
Business Extension IRS Form 7004
Estates and Trust Funds
Because the late payment interest rate is adjusted every quarter, figuring out how much you owe in interest and penalties can be complicated. you can avoid this complication if you estimate income tax liability accurately.
If you estimated properly and came out close to the right amount and paid on time, you most likely will not be penalized for any small difference. Once your extended return is processed, the IRS will send you a notice explaining any difference and how much more you owe. Or they will send you a refund.
If you are unable to pay your tax bill, file anyway. Otherwise, you'll will subjected to a "failure to file penalty" of 5% a month of your unpaid tax amount, up to 25%. This will be in addition to interest and late-payment penalties that will apply.
You can set up an installment payment plan with the IRS to pay your taxes in scheduled payments and reduce additional penalties. If you don't have the cash to pay up front, this is the best way to go...
How to File a Tax Extension
- EFile your tax extension online in minutes Online Tax Return Extension
- File an extension and pay any income tax due by April 15
- With online IRS Tax Extension web service, you can:
- Efile your federal extension
- Print a PDF copy of the extension you efiled
- Make a tax due payment, right from your checking or savings account
- See when your extension has been accepted by the IRS
- Access the forms you need to file a state extension by mail.
If you live outside the United States
Do you live outside of the United States?, you may be able to get an extension by filing IRS Form 2350:
If you believe you will qualify for special tax treatment, See IRS Publication 54:
Tax Guide for U.S. Citizens and Resident Aliens Abroad to learn if this form might help you. Application for Extension of Time to File U.S. Income Tax Return.