When filing your return, it is important to have all of the necessary information. At times, you may find that you have not received all the documentation needed to assemble your return, or you may just find yourself short of time to file a complete and accurate return. If you cannot file your return on time, simply apply for an extension by the due date of your return (generally April 15, 2010, for 2009 returns) for an extension of time to file. Send the extension request on Form 4868 to the Internal Revenue Service office with which you file your return.
Before You Start
Collect and organize your tax records
Review income statements from banks, employers, brokers, and governmental agencies on their respective 1099 forms.
Check for miscalculations, additions, and omissions.
1.Automatic Filing Extension
You may get an extension without waiting for the IRS to act on your request. You receive an automatic six-month extension for your 2008 return if you file Form 4868 by April 15, 2010. The extension gives you until October 15, 2010, to file your return. A late filing penalty will not be imposed if you fail to submit a payment with Form 4868, provided you make a good faith estimate of your liability based upon available information at the time of filing. However, although the extension will be allowed without a payment, you will be subject to interest charges and possible penalties (discussed below) on 2009 taxes paid after April 15, 2010. You may file Form 4868 electronically and use a credit card (American Express, MasterCard, Visa, or Discover Card) to make a tax payment.
Payment is made through a service provider that handles the credit card transaction and charges you a fee. See the Form 4868 instructions for the phone numbers and web addresses of the service providers.
When you file your return within the extension period, you enter on the appropriate line of the return any tax payment that you sent with your extension request and include the balance of the unpaid tax, if any.
Please note: While the extension is automatically obtained by a proper filing on Form 4868, the IRS may terminate the extension by mailing you a notice at least 10 days prior to the termination date designated in the notice.
2. Interest and Penalty for Late Payment
You still have to pay interest on any 2009 tax not paid by April 15, 2010, even if you obtain a filing extension. In addition, if the tax paid with Form 4868, plus withholdings and estimated tax payments for 2009, is less than 90% of the total amount due, you will be subject to a late-payment penalty (usually one-half of 1% of the unpaid tax per month) -- unless you can show reasonable cause.
3. Abroad on April 15, 2010
You do not get an automatic extension for filing and paying your tax merely because you are out of the country on the filing due date. If you plan to be traveling abroad on April 15, 2010, and want to get a filing extension, you must submit a claim for the automatic six-month filing extension on Form 4868 or use a credit card (see above) to make a payment with an extension request.
The only exception is for U.S. citizens or residents who live and have their main place of business outside the U.S. or Puerto Rico, or military personnel stationed outside the U.S. or Puerto Rico, on April 15, 2010. If you qualify, you are allowed an automatic two-month extension, until June 15, 2010, to file your return and also pay any tax due. However, the IRS will charge interest from the original April 15 due date on any unpaid tax. If you cannot file within the two-month extension period, you can obtain an additional four-month extension by filing Form 4868 by June 15, 2010. This additional four-month extension is for filing only and not payment. In addition to interest, a late payment penalty may be imposed (see above) on any tax not paid by June 15, 2010.
If you are eligible for the two-month extension but expect to qualify for the foreign earned income exclusion under the foreign residence or presence test after June 15, 2010, you can request on Form 2350 an extension until after the expected qualification date. Back to top
4. Installment Arrangements
If you cannot pay the tax due for 2009 by the October 15, 2010, extension date, you should file your return and attach Form 9465 to request an installment arrangement.
If you owe $10,000 or less and certain conditions are met, the IRS must enter into an installment arrangement if you request one. You must show that full payment cannot be currently made, and that in the previous five years you filed income tax returns and paid the tax, and did not enter into an installment arrangement during that period. If the current return is a joint return, your spouse must also meet these tests for the five-year period. You must agree to pay the tax liability within three years.
If you are using an installment agreement to pay the tax due on a timely filed return (including extensions), the late payment penalty is reduced by half from .5% to .25% per month.
Summary
You receive an automatic six-month extension for your 2008 return if you file Form 4868 by April 15, 2010. The extension gives you until October 15, 2009, to file your return.
An extension of time to file does not give you an extension of time to pay your taxes.
You have to pay interest on any 2009 tax not paid by April 15, 2010, even if you obtain a filing extension.
You do not get an automatic extension for filing and paying your tax merely because you are out of the country on the filing due date.
If you cannot pay the tax due for 2009 by the October 15, 2010, extension date, you should file your return and attach Form 9465 to request an installment arrangement.
IRS Circular 230 Disclosure: To comply with certain U.S. Treasury regulations, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments, enclosures, or other accompanying materials) was not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of avoiding any penalties that may be imposed on such taxpayer by the Internal Revenue Service; furthermore, this communication was not intended or written to support the promotion or marketing of any of the transactions or matters it addresses.
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