What Form 4868 Is For

Form 4868 is your get-out-of-jail-free card when you can't meet the April 15 tax deadline. This one-page form gives you an automatic 6-month extension to file your federal income tax return—pushing your deadline from April 15, 2015, to October 15, 2015. Think of it as hitting the snooze button on your tax filing obligation, but with one critical catch: it only extends the time to file, not the time to pay. If you owe taxes, interest starts accumulating from April 15 regardless of your extension.

The form works for most individual tax returns including Form 1040, 1040A, 1040EZ, 1040NR, and several others. It's designed for taxpayers who legitimately need more time to gather documents, work with tax preparers, or handle complex financial situations. The IRS doesn't require you to explain why you need the extension—you simply file it, and it's automatically granted as long as you meet the basic requirements. Interestingly, the extension also covers Form 709 (gift and generation-skipping transfer tax returns) for 2014, though it doesn't extend the payment deadline for those taxes.

When You’d Use Form 4868

Primary Use: File Form 4868 by April 15, 2015 (the original tax deadline), if you need more time to prepare your 2014 tax return. This is the most common scenario—you're organized enough to know you won't finish on time, so you proactively request the extension before the deadline passes.

Special Circumstances

• Out of the Country: If you're living or working abroad on April 15, you automatically get an extra 2 months (until June 15, 2015) without filing anything. However, if you need even more time beyond June 15, check the box on line 8 of Form 4868 to get an additional 4 months. This applies if you're a U.S. citizen or resident whose main workplace is outside the U.S. and Puerto Rico, or if you're in military service stationed overseas.
• Fiscal Year Taxpayers: If your tax year doesn't follow the standard calendar year, you must file a paper Form 4868 by your fiscal year's original due date.
• Nonresident Aliens: Form 1040NR and 1040NR-EZ filers can use this extension too. If you didn't receive wages subject to U.S. tax withholding and your return is due June 15, 2015, check the box on line 9.

Important Note

Form 4868 is not for amended returns. If you've already filed your 2014 return and need to correct it, you'll use Form 1040X instead. Form 4868 is strictly for getting extra time to file your original return.

Key Rules or Details for 2014

Understanding these three core rules will keep you out of trouble:

1. The Extension is Automatic—If You Qualify
You don't need IRS approval; the extension happens automatically when you file Form 4868 by April 15, 2015. However, to qualify you must properly estimate your 2014 tax liability using all available information. If the IRS later determines your estimate wasn't reasonable, they can void the extension retroactively. This doesn't mean you need to be perfectly accurate, but you can't wildly underestimate to avoid paying.

2. Payment and Filing Extensions Are Different
This is the rule that trips up most people. Form 4868 extends your filing deadline to October 15, 2015, but your payment deadline remains April 15, 2015. Any taxes owed after April 15 accrue interest at the federal rate. You'll also face a late payment penalty of ½ of 1% per month (up to 25% maximum) on unpaid taxes—unless you have "reasonable cause" for not paying or if you paid at least 90% of your actual 2014 tax liability by April 15 through withholding, estimated payments, or a payment with Form 4868.

3. No Need to Explain
Unlike some IRS forms that require lengthy justifications, Form 4868 doesn't ask why you need more time. Whether you're waiting for a K-1 from a partnership, dealing with a complicated investment portfolio, or simply procrastinating, the IRS doesn't need to know. Just file the form correctly and on time. The IRS will only contact you if your extension request is denied, which is rare.

Maximum Extension: Generally, the IRS cannot extend your deadline beyond 6 months (October 15, 2015, for calendar year filers). Exceptions exist for taxpayers living abroad—see Publication 54 for details.

Step-by-Step (High Level)

Step 1: Choose Your Filing Method

You have three options for 2014:

• Electronic filing (e-file) through IRS Free File, tax software, or a tax professional
• Pay electronically and the system automatically processes your extension
• Mail a paper form to the IRS

Electronic filing is fastest and provides an immediate confirmation number—keep this for your records.

Step 2: Estimate Your Tax Liability

This is the most critical step. Calculate what you expect to owe on your 2014 return:

• Line 4: Enter your estimated total tax liability (what will appear on line 63 of Form 1040, for example)
• Line 5: Enter your total payments already made (withholding from paychecks, estimated tax payments, etc.)—but don't include any payment you're making with this form
• Line 6: Subtract line 5 from line 4 to find your balance due

Be as accurate as possible with available information. Review your 2013 return as a baseline and account for any major income changes in 2014.

Step 3: Make a Payment (If Needed)

While you don't have to pay anything to get the extension, paying what you owe (or as much as possible) by April 15 saves you from interest and penalties. You can pay:

• Online using IRS Direct Pay or credit/debit card
• By phone using the Electronic Federal Tax Payment System
• By check or money order made out to "United States Treasury" (write your SSN, daytime phone, and "2014 Form 4868" on it)

Step 4: Submit the Form

If you filed electronically or paid online, you're done—don't mail anything. If filing by paper, mail Form 4868 to the address listed in the instructions based on your state of residence (with or without payment determines which address).

Step 5: File Your Return by October 15

Use the extra time wisely. When you file your 2014 return, remember to include any payment you made with Form 4868 on the appropriate line (line 70 for Form 1040, for example).

Common Mistakes and How to Avoid Them

Mistake #1: Assuming the Extension Covers Payments

The most expensive mistake is thinking you don't have to pay taxes until October 15. The extension only applies to filing paperwork. Pay what you owe by April 15, or at least get close (90% threshold), to avoid penalties and minimize interest.

Mistake #2: Not Filing the Extension at All

Some taxpayers think they'll just file late and deal with penalties later. Bad idea. The late filing penalty (5% per month, up to 25%) is ten times worse than the late payment penalty (½ of 1% per month). Always file Form 4868 by April 15 even if you can't pay a dime—it dramatically reduces your penalty exposure.

Mistake #3: Wildly Underestimating Tax Liability

While you're not expected to be perfect, deliberately lowballing your tax estimate can backfire. If the IRS determines your estimate wasn't reasonable, they can void your extension and hit you with late filing penalties. Use your 2013 return and any 2014 tax documents you have to make an honest estimate.

Mistake #4: Forgetting to Claim the Extension Payment

Many taxpayers pay with Form 4868 in April, then forget to include that payment when they file their return in October. This leads to overpaying. Always enter your Form 4868 payment on the correct line of your tax return (line 70 for Form 1040).

Mistake #5: Filing Both Paper and Electronic Forms

If you e-file or pay electronically, don't also mail a paper Form 4868 (unless you're sending a check payment with it). Filing twice creates confusion in IRS systems and may delay processing.

Mistake #6: Missing Name or SSN Changes

If you got married, divorced, or changed your name in 2014, report it to the Social Security Administration before filing Form 4868. A name mismatch can delay your extension processing.

What Happens After You File

Immediate Confirmation (E-File)

If you filed electronically, you'll receive a confirmation number within minutes. Save this number—it's your proof of filing. The IRS won't send you a paper acknowledgment, so this electronic confirmation is crucial if any disputes arise later.

Processing Time (Paper)

Paper forms take weeks to process, but you don't need to wait for confirmation. If you mailed Form 4868 by April 15, 2015, your extension is effective immediately. The IRS will only contact you if there's a problem, which is rare.

Your New Deadline

Your filing deadline is now October 15, 2015. You can file any time before this date—there's no advantage to waiting until the last minute. In fact, filing earlier means getting your refund sooner if you're owed one.

Interest Accrual

If you owe taxes and didn't pay the full amount by April 15, interest accumulates daily from April 15 until you pay. The rate is set quarterly by the IRS (around 3% annually in 2014-2015, but check current rates). This interest is compounded daily, so the longer you wait, the more expensive it becomes.

Penalty Scenarios

• You paid 90%+ by April 15: No late payment penalty, just interest on the remaining balance
• You paid less than 90% but have reasonable cause: Attach an explanation to your October return; the IRS may waive penalties
• You paid less than 90% without reasonable cause: Expect a ½ of 1% monthly penalty on unpaid taxes, plus interest

Filing Your Return

When you complete your 2014 tax return, it will look like any other return—you don't need to attach Form 4868. Simply file by October 15 and include any extension payment on the appropriate line. If you filed jointly on Form 4868 but file separately on your return (or vice versa), special rules apply for allocating extension payments between spouses.

After October 15

If October 15 passes and you still haven't filed, late penalties kick in immediately. At this point, you're officially late with no extensions remaining. The late filing penalty jumps to 5% per month (or a minimum of $135 if your return is more than 60 days late). File as soon as possible to stop the penalty clock.

FAQs

1. Does filing Form 4868 increase my chances of being audited?

No. Filing for an extension is a routine, legitimate action that millions of taxpayers take every year. It doesn't flag your return for audit or draw extra IRS scrutiny. In fact, using the extra time to prepare a complete and accurate return may reduce errors that could trigger an audit.

2. Can I get more than 6 months if I really need it?

Generally, no—October 15, 2015, is the absolute deadline for most taxpayers. The only exception is if you're living abroad and qualify for special treatment under Publication 54. In that case, you might be able to use Form 2350 to request an extension beyond October 15. For everyone else, 6 months is the maximum.

3. What if I file Form 4868 but then file my return before the extension period ends?

No problem at all. The extension gives you until October 15, but you can file earlier if you're ready. There's no penalty for filing before your extension expires. Many taxpayers request extensions as a safety net but end up filing in August or September once they've gathered their documents.

4. I'm getting a refund, so I don't owe anything—do I still need to worry about the April 15 deadline?

If you're certain you'll receive a refund (not owe taxes), the consequences of filing late are minimal. You won't face penalties or interest because there's no unpaid tax. However, the IRS typically won't issue refunds for returns filed more than 3 years after the due date, so don't wait too long. Filing Form 4868 is still a good idea to avoid late filing penalties if your refund estimate turns out to be wrong.

5. Can married couples file separate Form 4868s if they're filing a joint tax return?

You can, but it's simpler to file one joint Form 4868 if you plan to file a joint return. If you each file separately but later file jointly, add both extension payments together on your joint return. Conversely, if you file a joint Form 4868 but later file separate returns, you can allocate the extension payment between your separate returns however you agree.

6. Do I need to use tax software to file Form 4868, or can I do it myself?

Form 4868 is one of the simplest IRS forms—just one page with basic information. You can absolutely complete it yourself and mail it, or use IRS Free File (available at IRS.gov) to file electronically for free. Many taxpayers handle it without professional help, though tax software can make the process even easier by calculating your estimated liability.

7. What happens if I miss both the April 15 deadline and forget to file Form 4868?

You're now officially late, but all is not lost. File your return as soon as possible—the late filing penalty stops accruing once you file. If you have a legitimate excuse (serious illness, natural disaster, death in the family), attach a written explanation requesting penalty relief. The IRS has discretion to waive penalties for reasonable cause. However, interest on unpaid taxes is never waived, so you'll still owe that from April 15 forward.

Sources

• IRS Form 4868 (2014)
• IRS.gov

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