What Is an IRS Tax Extension?
A tax extension is an extension of time to file your tax return. However, it is not an extension of time to pay your tax bill.
Any taxpayer can get an automatic 6-month tax return extension by filing or efiling IRS Form 4868. It is easy to prepare and efile your federal tax extension on efile.com, and the online software generates Form 4868 for you.
Why and Why Not Should I efile an Extension?
Consider the reasons why to and why not to file an extension below:
Is a Tax Extension Right for Me?
Before you efile a tax extension, consider thes common misconceptions and truths about tax extensions:
Myth 1: "Filing a tax extension postpones my tax deadline and my tax payments without IRS penalties ."
Truth 1: A tax extension only postpones your time to file a return, not your time to pay your taxes! In addition, you may face late filing penalties for each month your return is not filed.
Myth 2: "Filing a tax extension eliminates any late tax
Truth 2: Even if you file an extension on time, you will still face IRS late payment penalties for not paying your taxes on time.
Should I file an extension on time if I don't have all the information I need to file a tax return?
If you do not have enough tax information, or all your tax records, to start and efile a tax return by April 15. you should efile an IRS extension by that date. However, you will need to find out how much you expect to owe in taxes and submit payment (for at least 90% of your balance due) by April 15 in order to avoid IRS penalties and interest. You can estimate your tax liability (or tax refund) with the Free Tax Calculator .
What should I do before I prepare and file my tax return?
Before you file, educate yourself about your tax situation: Try our free tax educator tools to find out if someone qualifies as your dependent, if you can claim the Earned Income Credit or the Child Tax Credit, or if you can file as Head of Household!