Form 4868 (2020) Checklist: Application for Automatic Extension of Time To File
Purpose and Overview
Form 4868 grants calendar-year taxpayers an automatic 6-month extension to file Form 1040, 1040-SR, 1040-NR, 1040-PR, or 1040-SS by October 15, 2021. Out-of-country U.S. citizens or residents receive an automatic 2-month extension to June 15, 2021, with the option to request an additional 4 months. The extension applies only to filing your return, not to paying taxes owed. Unpaid balances accrue interest from April 15, 2021, and may trigger a late payment penalty of 0.5% monthly (maximum 25%) unless you meet the reasonable cause requirements.
Step-by-Step Filing Instructions
Step 1: Enter Your Identification Information
Complete Part I with your name and address. If filing jointly, include both spouses’ names in the order they will appear on your return. Enter your Social Security Number (SSN) on line 2 and your spouse’s SSN on line 3 if applicable. If you are a nonresident or resident alien without an SSN, apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7. You may temporarily enter “ITIN TO BE REQUESTED” on Form 4868, but you must obtain an actual ITIN before filing your tax return.
Step 2: Estimate Your Total 2020 Tax Liability (Line 4)
Calculate and enter your estimated total tax liability using the appropriate line from your expected return: Form 1040/1040-SR/1040-NR line 24, Form 1040-PR line 6, or Form 1040-SS line 6. Make your estimate as accurate as possible, given the available information. If you expect zero tax liability, enter -0-. The IRS may void your extension if it determines your estimate was unreasonable based on the information you had available.
Step 3: Report Total Expected Payments (Line 5)
Enter your total expected payments for 2020, including federal withholding, estimated tax payments, and prior-year overpayments applied to 2020. For Form 1040, 1040-SR, or 1040-NR filers, use line 33 but exclude Schedule 3, line 9 payments (which are payments made with this Form 4868). For Forms 1040-PR and 1040-SS, use line 12 and do not include the amount you are paying with this Form 4868.
Step 4: Calculate Your Balance Due (Line 6)
Subtract line 5 from line 4. If line 5 exceeds line 4, enter -0-. A negative balance does not prevent eligibility for extension and does not require payment.
Step 5: Enter Your Payment Amount (Line 7)
Specify any amount you are remitting with Form 4868. You may pay the full balance, a partial amount, or nothing at all and still receive the extension. However, paying less than the full balance due triggers interest accrual from April 15, 2021, and may result in late payment penalties on the unpaid portion.
Step 6: Check Line 8 If Out of the Country
Check this box if you are a U.S. citizen or resident living outside the U.S. and Puerto Rico with your main place of work abroad, or on military duty outside the U.S. and Puerto Rico on April 15, 2021. This grants you an automatic 2-month extension to June 15, 2021, plus an additional 4 months if Form 4868 is filed (total extension to October 15, 2021). Interest still accrues on unpaid taxes from April 15, 2021, regardless of your location.
Step 7: Check Line 9, If Applicable, for Form 1040-NR Filers
If you file Form 1040-NR and did not receive wages subject to U.S. tax withholding, and your return due date is June 15, 2021, check the box on line 9. This different due date applies to certain nonresident aliens not engaged in U.S. business or those with specific treaty provisions.
Step 8: Choose Your Filing Method
You have three options to request your extension: pay electronically through IRS Direct Pay, Electronic Federal Tax Payment System, or credit/debit card (extension is automatic when you pay electronically and indicate it is for an extension); file Form 4868 electronically through tax software or a tax professional; or mail paper Form 4868 to the appropriate IRS address. Fiscal-year taxpayers must file a paper Form 4868 by their original return due date.
Step 9: Submit Form 4868 by the Deadline
Calendar-year taxpayers must file by April 15, 2021. Out-of-country taxpayers have until June 15, 2021, to file both their return and Form 4868. However, they should file Form 4868 if they need the additional four-month extension to October 15, 2021. Fiscal-year taxpayers must file by their original fiscal-year return due date.
Step 10: Keep Records and Do Not Attach to Your Return
If e-filing, retain your electronic acknowledgment for your records. Do not mail a paper copy unless paying by check or money order. When you file your actual 2020 return later, do not attach Form 4868. Instead, include any payment made with Form 4868 on Schedule 3, line 9 for Form 1040/1040-SR/1040-NR, or line 12 for Forms 1040-PR/1040-SS.
Payment Methods and Procedures
Making Electronic Payments
You can pay online using IRS Direct Pay from your bank account, the Electronic Federal Tax Payment System, or by credit/debit card. Phone payments are also available through the Electronic Federal Tax Payment System or card services. When you pay electronically and indicate that the payment is for an extension, you will automatically receive it without needing to file a separate Form 4868. You will receive a confirmation number; please keep the information for your records.
Paying by Check or Money Order
Make your payment payable to “United States Treasury.” Write your SSN, daytime phone number, and “2020 Form 4868” on your check or money order. Do not staple the payment to Form 4868. Mail both to the appropriate IRS address based on your location. Use Form 4868 as a voucher if you e-filed the extension but are paying by mail.
Interest and Penalties
Interest on Unpaid Tax
Interest accrues on any tax not paid by April 15, 2021, even if you qualify for the 2-month out-of-country extension or file Form 4868. Interest continues until you pay the full tax amount. You cannot avoid interest charges, even if you have a reasonable cause for late payment.
Late Payment Penalty
The late payment penalty is 0.5% of the unpaid tax per month or part of a month, up to a maximum of 25%. This penalty is charged on April 15, 2021, for any unpaid amount. You can avoid this penalty if you demonstrate reasonable cause or meet the safe harbor rule: at least 90% of your total 2020 tax is paid by April 15, 2021, through withholding, estimated payments, or Form 4868 payment, and the remaining balance is paid when you file your return.
Late Filing Penalty
If you file your return after the extension deadline, the late filing penalty is typically 5% of the unpaid tax per month or part of a month, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty is $435 (for returns due in 2020, 2021, and 2022) or 100% of the tax owed, whichever is less. You may avoid this penalty by demonstrating reasonable cause for filing late.
Special Considerations for 2020
COVID-19 Relief for Foreign Earned Income Exclusion
Revenue Procedure 2020-27 provides a waiver of time requirements for the bona fide residence test and physical presence test under Section 911 if you were required to leave a foreign country during the COVID-19 emergency. If you qualify for this waiver, you may not need to file Form 2350 for an extension beyond the standard period. Review the 2020 instructions for Form 2350 and Revenue Procedure 2020-27 for details on eligibility.
Gift and GST Tax Extension
An extension for your 2020 income tax return automatically extends the time to file Form 709 (Gift and Generation-Skipping Transfer Tax Return) for 2020. However, it does not extend the time to pay gift and GST tax owed. Use Form 8892 to make gift and GST tax payments. Interest and penalties apply to the unpaid gift and GST tax from the original due date.
Important Reminders
You do not need to explain why you are requesting the extension. The IRS automatically grants the extension if you file Form 4868 properly and on time. The IRS will only contact you if your request is denied, typically due to errors like misspellings, incorrect SSNs, or mismatched information in IRS records.
Do not file Form 4868 if you want the IRS to calculate your tax for you or if you are under a court order to file by the regular due date.
Filing for an extension does not increase your chances of being audited. However, you must still pay at least 90% of your tax liability by the original due date to avoid penalties.
Private delivery services, such as UPS, FedEx, and DHL Express, may be used for timely filing; however, they cannot deliver to IRS P.O. box addresses. Check the IRS website for the current list of approved private delivery services and corresponding street addresses.
If you and your spouse file separate Forms 4868 but later file a joint return, enter the total amount paid with both forms on your joint return. If you file jointly on Form 4868 but later file separately, you can allocate the payment between your separate returns in any agreed-upon amounts.
The average time to complete Form 4868 varies based on individual circumstances. Ensure you allow adequate time before the deadline to avoid filing errors or missing deadlines.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
