| April 15 is fast approaching but there's no way you can | | | | ahead and prepare the return to the best of your |
| get your personal income tax return done by then. | | | | ability, do the calculations, and see where you stand. |
| What's a procrastinator to do? File an extension, of | | | | If you are getting a refund, great. If you're not in a hurry |
| course. But perhaps you are wondering whether this is | | | | to get the refund, then file the extension form and wait |
| the best option for you. Read on to find out. | | | | until October 15 to send in the return. But if you have a |
| You can automatically extend the April 15 due date to | | | | balance due on the return, then you should send in |
| October 15 by filing Form 4868, "Application for | | | | your balance due with Form 4868. That way you |
| Automatic Extension of Time To File U.S. Individual | | | | avoid any penalty and interest for late payment of tax. |
| Income Tax Return." So now you have six more | | | | When October 15 rolls around, you send in the return, |
| months to file your personal income tax return. | | | | showing the Form 4868 payment as a credit. The end |
| The nice thing about Form 4868 is that simply filing this | | | | result is this: you paid your tax on time (April 15), and |
| form grants an automatic, no-questions-asked 6-month | | | | you filed your tax return legally late (October 15) |
| extension. You don't have to have a reason. Just | | | | because you filed the extension form on time. |
| sending this form to the IRS on or before April 15 gets | | | | Obviously, the key here is whether or not you have a |
| you the extra six months. | | | | balance due on your return. If you have a balance due, |
| But here's another important point about Form 4868: | | | | but don't send in the payment with Form 4868, then |
| This 6-month extension is NOT an extension to pay | | | | you will have penalty and interest charges for paying |
| any tax you may owe on the tax return. Form 4868 | | | | the tax after April 15. |
| only grants an extension of time to file the tax return. | | | | Bottom line: Do not overlook the fact that Form 4868 |
| So, if you usually get a refund on your personal tax | | | | does not grant you an extension of time to pay the |
| return, you are OK. But, if you think you might have a | | | | tax. It only gives you an extension of time to file the |
| balance due, or if you are not sure, then you should go | | | | return. |