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What Form 4868 Is For

Form 4868 is the IRS document that gives you extra time to file your 2011 federal income tax return. Think of it as a “get out of jail free” card for the April deadline—but only for filing, not for paying. When you submit this form, the IRS automatically grants you an additional six months to file your tax return (or four extra months if you're living “out of the country” and already qualify for the automatic two-month extension). For most people with calendar-year returns due April 17, 2012, this extension pushes your filing deadline to October 15, 2012.

The beauty of Form 4868 is in its name: it's an automatic extension. Unlike some IRS requests that require approval, if you properly complete and timely file Form 4868, you're automatically granted the extension—no explanation needed, no permission required. The IRS will only contact you if your request is denied.

This form works for most individual income tax returns, including Form 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040-PR, and 1040-SS. As a bonus, the extension also covers your 2011 Form 709 (Gift and Generation-Skipping Transfer Tax Return) if you need to file one, though it doesn't extend the time to pay any gift or GST taxes due.

When You’d Use Form 4868

You'd use Form 4868 when you realize you can't gather all your tax documents, calculate your income and deductions, or prepare your return by the regular April filing deadline. Common situations include:

• Missing documents: Your brokerage firm hasn't sent your 1099 forms, or you're waiting for K-1s from partnerships or trusts.
• Complex tax situations: You have capital gains, rental properties, or self-employment income that requires extra time to organize.
• Life happens: You're dealing with a medical emergency, family crisis, job change, or simply didn't start early enough.
• Professional help delays: Your tax preparer is backlogged or you're switching preparers mid-season.
• Living abroad: You're a U.S. citizen or resident working overseas and need more time beyond the automatic two-month extension.

Important timing note: Form 4868 must be filed by the regular due date of your return (April 17, 2012, for most 2011 calendar-year returns). If you miss this deadline, you can't retroactively get the extension. The form is for getting time before the deadline expires, not for fixing a late filing after the fact.

This is NOT an amended return form: If you've already filed your 2011 tax return and discover errors, you'd use Form 1040X (Amended U.S. Individual Income Tax Return), not Form 4868. Think of Form 4868 as a pre-game timeout, not a post-game correction.

Key Rules for the 2011 Tax Year

Understanding these critical rules for 2011 will keep you out of trouble:

1. Extension to file, NOT to pay: This is the most important rule. Form 4868 gives you more time to file your paperwork, but any taxes you owe are still due by April 17, 2012.
2. The 90% safe harbor rule: You can avoid the late-payment penalty during your extension period if you've already paid at least 90% of your actual 2011 tax liability through withholding, estimated tax payments, or payments made with Form 4868 by the April deadline.
3. Three ways to file:
   • Electronically (e-file)
   • Electronic payment (credit/debit card or EFTPS)
   • Paper filing via mail
4. Proper tax estimation required: You must reasonably estimate your 2011 tax liability using available information.
5. Maximum extension period: Generally, six months (until October 15, 2012) for most taxpayers.
6. Out-of-country extensions: U.S. citizens or residents “out of the country” automatically get two extra months (until June 15, 2012) and may request four more months by filing Form 4868.

Step-by-Step Guide (High Level)

Step 1: Estimate Your 2011 Tax Liability

Use your W-2s, 1099s, and other income records to estimate your total tax for 2011. Enter this on line 4 of Form 4868.

Step 2: Calculate Your 2011 Payments to Date

Add up federal income tax paid through withholding and estimated payments. Enter this on line 5.

Step 3: Determine Your Balance Due

Subtract line 5 from line 4. If line 5 exceeds line 4, enter “0.” Pay as much as possible to limit interest.

Step 4: Complete the Form

Fill in Part I (personal details) and Part II (tax information).

• Check line 8 if you’re out of the country.
• Check line 9 if filing Form 1040NR/NR-EZ without U.S. wage income.

Step 5: Choose Your Filing Method and Submit

• Electronic filing: Use IRS e-file for instant acknowledgment.
• Payment by card/EFTPS: Pay online or by phone to get an automatic extension.
• Paper filing: Mail your completed form to the address listed in the instructions (varies by state).

Step 6: File Your Actual Return by the Extended Deadline

Submit your completed tax return anytime before the extension expires. Report your Form 4868 payment on your tax return (line 68 for Form 1040). Do not attach Form 4868.

Common Mistakes and How to Avoid Them

Mistake #1: Confusing “Extension to File” with “Extension to Pay”

Form 4868 doesn’t extend your payment deadline.
Avoid it: Pay as much as you can by April 17 to minimize penalties.

Mistake #2: Not Making a Reasonable Tax Estimate

Entering “$0” or an unrealistic number invalidates your extension.
Avoid it: Use your 2010 return as a reference and adjust for changes.

Mistake #3: Filing After the Deadline

Late Form 4868 filings are not valid.
Avoid it: File early—especially if mailing paper forms.

Mistake #4: Thinking the Extension Is Optional

You must file Form 4868 if you plan to file late.
Avoid it: File even if you can’t pay, to avoid harsh late-filing penalties.

Mistake #5: Forgetting to Claim Credit for Extension Payments

You must report payments made with Form 4868 on your return.
Avoid it: Keep your confirmation and record the amount correctly.

Mistake #6: Assuming the Extension Covers State Taxes

Form 4868 only applies to federal taxes.
Avoid it: Check your state’s extension requirements.

Mistake #7: Not Keeping Proof of Filing

Without proof, the IRS may claim your form was late.
Avoid it: Use certified mail or e-file confirmation.

What Happens After You File

• Immediate confirmation: Electronic filers receive acknowledgment instantly.
• Paper filers: The IRS won’t contact you unless there’s an issue.
• New deadline: For 2011 returns, October 15, 2012.
• Interest accrues: Interest applies to unpaid balances after April 17, 2012.
• Penalties: Late payment penalties of 0.5% per month (up to 25%), unless 90% of taxes were paid on time.
• You can file early: Filing before October stops further interest accumulation.
• Refunds: Extensions don’t delay or affect refunds—you’ll get it once you file.

Frequently Asked Questions (FAQs)

Q1: Does Form 4868 cost anything to file?

No. It’s free to request an extension. Free e-filing options are available via IRS Free File.

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

Yes. Filing for an extension doesn’t affect your refund—you just get it later once you file your return.

Q3: What if I file Form 4868 but don’t file my return by October 15?

A late-filing penalty (5% per month, up to 25%) applies. If over 60 days late, the minimum penalty is $135 or the balance due—whichever is smaller.

Q4: I made a mistake on my estimate. Will the IRS cancel my extension?

Not unless your estimate was unreasonable. Reasonable estimates keep your extension valid.

Q5: Can I file for an extension if I'm already late?

No. Form 4868 must be filed by April 17, 2012. File your return immediately to minimize penalties.

Q6: Do I need to attach Form 4868 to my tax return?

No. Report the payment you made with Form 4868, but don’t attach the form itself.

Q7: Can my spouse and I file separate Forms 4868 but a joint return?

Yes. Combine the total payments from both Forms 4868 on your joint return. You can also divide the payment between separate returns.

For More Information

Visit IRS.gov to download the 2011 Form 4868 and instructions.
For taxpayers abroad, see IRS Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad.

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