What Form 4868 Is For

Form 4868 is the official IRS document that gives you extra time to file your individual income tax return. For the 2015 tax year, this form allows most taxpayers to extend their filing deadline from April 18, 2016 (April 19 for Maine and Massachusetts residents) to October 17, 2016—a full six additional months. Think of it as a "hall pass" from the IRS that prevents late-filing penalties when you need more time to prepare your return.

The form applies to various individual tax returns including Form 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040-PR, and 1040-SS. Interestingly, filing this extension also automatically extends the time to file Form 709 (Gift and GST Tax Return) for 2015, though it doesn't extend the time to pay any gift or generation-skipping transfer taxes you might owe.

It's crucial to understand what Form 4868 does not do: it doesn't extend the deadline to pay your taxes. If you owe money to the IRS, that payment is still due by the original April deadline, regardless of whether you file an extension. The extension only gives you more time to complete and submit the paperwork—not more time to pay what you owe.

When You’d Use Form 4868 (Late/Amended)

You should file Form 4868 before the original tax filing deadline if you need more time to prepare an accurate return. Common situations include waiting for delayed tax documents, dealing with complex financial situations, experiencing personal emergencies, or simply needing more time to gather records and ensure accuracy.

It's important to note that Form 4868 is not for late or amended returns. If you've already missed the April deadline without filing an extension, you cannot retroactively apply for one—you're officially late and may face penalties. Similarly, if you've already filed your 2015 return and later discover errors or omissions, Form 4868 won't help; you'll need to file Form 1040X (Amended U.S. Individual Income Tax Return) instead.

Special Circumstances

If you're a U.S. citizen or resident living "out of the country" on the regular due date, you automatically receive a two-month extension until June 15, 2016, without filing any forms. If you need even more time beyond that, you can file Form 4868 and check the box on line 8 to receive an additional four months (for a total of six months from the original deadline). The IRS defines "out of the country" as living outside the United States and Puerto Rico with your main place of work outside these areas, or being in military or naval service on duty outside the U.S. and Puerto Rico.

Key Rules or Details for 2015

The most important rule for 2015 is the 90 percent payment requirement. While you're not forced to pay your estimated tax liability when filing Form 4868, the IRS expects you to make a good-faith effort. If you pay at least 90% of your actual 2015 tax liability by the April deadline (through withholding, estimated tax payments, or a payment with Form 4868), you'll have "reasonable cause" and avoid the late-payment penalty during the extension period.

The extension is automatic as long as you properly submit the form by the deadline. The IRS will only contact you if your extension request is denied, which typically happens due to errors like misspelled names, incorrect Social Security numbers, or out-of-date information. You don't need to explain why you're requesting the extension—it's your right as a taxpayer.

For 2015, there are three ways to request the extension: (1) pay all or part of your estimated tax electronically using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit/debit card and indicate it's for an extension; (2) file Form 4868 electronically through IRS e-file using tax software or a tax professional; or (3) file a paper Form 4868 by mail. If you make an electronic payment for your extension, you don't need to file any forms—the extension is automatically processed.

Interest and penalties continue to accrue during the extension period if you owe taxes but haven't paid. Interest is charged on any unpaid tax from the original April deadline until you pay in full, regardless of the extension. The late-payment penalty is typically 0.5% of the unpaid tax per month (up to 25% maximum), though this can be waived if you meet the 90% payment threshold or have reasonable cause. The late-filing penalty—usually 5% per month, up to 25%—will not apply if you properly file Form 4868 before the original deadline.

Step-by-Step (High Level)

Step 1: Estimate Your Tax Liability

Using the information you have available, calculate your expected total tax liability for 2015 as accurately as possible. This should match what you anticipate entering on the "total tax" line of your eventual return (line 63 for Form 1040, line 39 for Form 1040A, or line 12 for Form 1040EZ).

Step 2: Calculate Your Balance Due

Subtract your total 2015 payments (withholding, estimated tax payments, and any credits) from your estimated tax liability. If you've already paid more than you owe through withholding, you might have a refund coming, making your balance due zero.

Step 3: Choose Your Filing Method

Decide whether to file electronically or by paper. Electronic filing is faster, more convenient, and provides immediate confirmation. If you choose to pay electronically using Direct Pay, EFTPS, or a credit/debit card and indicate it's for an extension, you don't need to file any forms. Otherwise, you can e-file Form 4868 through tax software or a tax professional, or mail a paper form to the appropriate IRS processing center based on your state of residence.

Step 4: Complete the Form

Enter your name(s), address, and Social Security number(s). If filing jointly, include both spouses' names in the order they'll appear on your return. Fill in lines 4-7 with your estimated tax liability, total payments, balance due, and the amount you're paying with the extension (if any). Check boxes on lines 8 or 9 if applicable (out of the country, or Form 1040NR/1040NR-EZ filers without wage withholding).

Step 5: Submit by the Deadline

File your extension request by April 18, 2016 (April 19 for Maine/Massachusetts residents). Electronic submissions provide instant confirmation that should be kept with your tax records. Paper forms must be postmarked by the deadline. If paying by check or money order, make it payable to "United States Treasury" and write your Social Security number, phone number, and "2015 Form 4868" on it.

Step 6: File Your Return by October 17

Use the extended deadline wisely to prepare an accurate, complete return. File your actual 2015 tax return anytime before October 17, 2016. Don't attach a copy of Form 4868 to your return, but do include any payments made with the extension on the appropriate line of your tax return.

Common Mistakes and How to Avoid Them

Mistake #1: Confusing "Extension to File" with "Extension to Pay"

Many taxpayers mistakenly believe Form 4868 gives them six more months to pay their taxes. It doesn't. The extension only applies to filing the paperwork—payment is still due by the original April deadline. How to avoid: If you owe taxes, pay as much as you can by April 18, even if you can't pay the full amount. This minimizes interest and penalty charges.

Mistake #2: Making an Unreasonable Tax Estimate

Some taxpayers hastily guess their tax liability without proper calculation. If the IRS later determines your estimate wasn't reasonable based on available information, they can void the extension and charge late-filing penalties. How to avoid: Take time to gather your tax documents and calculate a realistic estimate using your actual income, deductions, and credits—even if it's not perfect.

Mistake #3: Filing After the Deadline

An extension request filed on April 19 (or later) is worthless—you're already late. The extension must be in the IRS's hands by the original deadline. How to avoid: Don't procrastinate. If you're mailing the form, send it several days early to account for mail delays. Electronic filing is safer since you get instant confirmation.

Mistake #4: Failing to Pay the 90% Threshold

While payment isn't required, falling below 90% of your actual tax liability can trigger late-payment penalties. How to avoid: Calculate your estimated tax carefully and try to pay at least 90% of what you'll actually owe. If cash flow is tight, consider using a credit card—the card interest might be lower than IRS penalties.

Mistake #5: Forgetting to Claim the Extension Payment

Taxpayers sometimes pay with Form 4868 but forget to credit that payment when filing their actual return, essentially paying twice. How to avoid: Keep thorough records of your extension payment, including confirmation numbers. Enter the amount on the correct line of your tax return (line 70 for Form 1040, line 46 for Form 1040A, etc.).

Mistake #6: Not Filing a Return by the Extended Deadline

Getting the extension doesn't mean you can ignore the October deadline. Missing that date results in penalties that negate the purpose of filing the extension. How to avoid: Set a reminder for mid-October and start preparing your return well in advance of the extended deadline.

Mistake #7: Using Old Information

Filing with an outdated address, changed name (from marriage/divorce), or wrong Social Security number can cause the extension to be rejected. How to avoid: Update your information with the Social Security Administration and IRS before filing. Use Form 8822 for address changes.

What Happens After You File

If You File Electronically

You'll receive an electronic acknowledgment almost immediately confirming that the IRS has accepted your extension request. Save this confirmation with your tax records—it's proof that you filed on time. You can then prepare your 2015 return at your own pace, with a new deadline of October 17, 2016.

If You File by Mail

The IRS generally won't send you a confirmation unless there's a problem. They operate on a "no news is good news" basis—you'll only hear from them if your extension is denied. Keep proof of mailing (certified mail receipt, tracking number, or private delivery service records) as evidence of timely filing.

Payment Processing

Any payment submitted with Form 4868 will be credited to your 2015 tax account. When you file your actual return, you'll report this payment on the appropriate line, and it will reduce your balance due (or increase your refund). The IRS processes payments separately from forms, so even if there's an error on your form, your payment will still be applied to your account.

Interest Continues to Accrue

From April 18 through the date you pay your full tax liability, interest accumulates on any unpaid balance at the federal short-term rate plus 3%. This applies even if you got an extension and filed your return on time—the clock starts ticking on the original deadline. The interest is compounded daily, so the sooner you pay, the less it costs.

Penalty Considerations

If you paid at least 90% of your actual tax liability by the original deadline, you'll avoid the late-payment penalty for the extension period. However, if you paid less than 90%, the 0.5%-per-month late-payment penalty applies to the unpaid amount from April onward, unless you can demonstrate reasonable cause. The good news: by filing Form 4868 before the deadline, you've completely avoided the late-filing penalty (5% per month), which is much steeper.

Filing Your Actual Return

You can file your 2015 return anytime between receiving the extension and October 17, 2016. Most tax preparers and software will accept 2015 returns throughout this period. When you do file, include any payments made with Form 4868 on the correct line, and don't attach a copy of the extension form to your return—the IRS already has it in their system.

State Extensions

Remember that a federal extension doesn't automatically extend your state tax deadline in all states. Many states honor the federal extension or have automatic extensions, but some require separate state extension forms. Check your state's tax agency website to ensure compliance.

FAQs (Frequently Asked Questions)

Q1: Does filing Form 4868 increase my chances of being audited?

No. Filing an extension is a normal part of tax compliance and doesn't raise red flags with the IRS. In fact, taking extra time to prepare an accurate return might reduce errors that could trigger an audit. The IRS doesn't use extension filing as an audit selection criterion.

Q2: Can I file Form 4868 if I'm expecting a refund?

Absolutely, though there's less urgency since you won't face penalties or interest when the IRS owes you money. However, keep in mind that you won't receive your refund until you file your actual return. If you file the extension but don't submit your return within three years of the original deadline, you'll lose your right to the refund entirely.

Q3: What if I filed Form 4868 but then completed my return before the extension deadline?

You can file your return anytime after submitting the extension—you don't have to wait until October. Filing earlier means getting your refund sooner (if you have one) or resolving any tax debt more quickly. Just file your return normally; the IRS will simply note that you filed before your extended deadline.

Q4: I'm married. Can my spouse and I file separate extensions and then file jointly?

Yes. If you and your spouse each filed a separate Form 4868 but later decide to file a joint return, you can combine the payments from both extension forms on your joint return. Conversely, if you filed a joint extension but later file separately, you and your spouse can divide the payment in any agreed-upon amounts or apply the entire payment to either return.

Q5: What happens if I don't pay the full amount I estimated on Form 4868?

There's no penalty for paying less than the amount shown on line 7 of Form 4868—that line is just telling the IRS how much you're choosing to pay right now. However, if your total payments (withholding + estimated payments + extension payment) don't reach 90% of your actual tax liability, you may face late-payment penalties. You're not locked into paying the exact amount you estimated.

Q6: Can I get more than six months if I need additional time?

Generally, no. The IRS won't extend the deadline beyond October 17 for most taxpayers. The exception is if you're living outside the country—in that case, different rules may apply (see IRS Publication 54). If you have extraordinary circumstances like a natural disaster or military service in a combat zone, special extensions might be available, but these require specific documentation.

Q7: I filed Form 4868 electronically but never received a confirmation. What should I do?

Check your email spam/junk folder first—confirmations sometimes get filtered there. If you filed through tax software, log back into the program to check your submission status. If you're still concerned, you can call the IRS at 1-800-829-1040 to verify they received your extension, though wait times may be long during tax season. Keep records of your submission attempt (date, time, method) as evidence of good-faith effort to file on time.

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