How To File A Tax Extension With The IRS – Forbes Advisor – Technologist

Millions of Americans request federal income tax extensions every year. About 10% of individual taxpayers submit valid tax extension forms during a typical tax season, according to the IRS. 

There are many reasons for taxpayers to file an extension. Perhaps your tax forms are late, or you’ve been living in another country. Or maybe you simply need more time to get organized.

A tax extension is considered valid if it’s filed ahead of the original tax deadline, which for this year is Monday, April 15. The extension gives you six extra months—until October 15, 2024—to file your 2023 tax return. 

What You Need For Your 2023 Taxes

Filing for an extension is simple and free. Taxpayers can complete the extension request form through the IRS Free File website. The official document for requesting an extension is Form 4868 and it is less than half a page long. All extensions will be applied automatically.

“The request form is automatic, so taxpayers do not need to wait for any sort of approval confirmation once the form is submitted,” says Nell Curtis, an accounting instructor at Milwaukee Area Technical College in Wisconsin.

Should I File a Tax Extension?

Most people who request an extension for filing their tax return have more complicated taxes than, say, Americans who receive a W-2 from their employer and a handful of forms for mortgage and student loan interest. Regardless, any taxpayer can request this additional time to gather the information and documentation they need for an accurate filing.

Importantly, the extension applies only to filing the return, not to paying the taxes.

Common Mistakes People Make When Filing a Tax Extension

For the 2023 tax year, most taxpayers must pay by the original filing deadline of April 15, 2024—even if they file for an extension.

“This can be a common mistake,” says Daniel Fan, senior managing director, head of wealth planning at First Foundation Advisors in Irvine, California. “It is clearly stated by the IRS on the instructions and their website that an extension of time does not provide an extension for paying the taxes.”

“Taxpayers need to make tax payments by the original filing deadline based on their best estimate of what the tax will be,” Curtis says. “Failing to pay taxes in time can result in penalties and interest charges.”

Another major misconception is that filing a tax return extension will increase the chance of the return being audited, says Kevin Matthews, an assistant professor of accounting at George Mason University.

“In my 20 years of working on taxes, I have not seen significant evidence of this,” he says. “People extend for all kinds of reasons and the IRS permits it.”

If you are filing a paper return extension, make sure you mail it to the correct address. The IRS has several facilities around the nation. “Sometimes people accidentally send [their paper return] to the wrong place,” says Matthews.

He notes that a misdirected form can delay the extension or prevent it from being processed at all. In some cases, a failure-to-file penalty may be applied to the tax return. So before sending your paper form, check the IRS website to confirm you’re using the correct address for taxpayers in your area.