Overview

• Filing for a tax extension provides an additional six months to submit returns but does not extend the April 15 payment deadline for taxes owed.
• Taxpayers who miss the payment deadline face penalties of 0.5% per month and interest charges, currently at approximately 7% annually.
• The IRS recommends using last year’s tax return as a baseline to estimate taxes owed when filing an extension.
• Extensions can be filed electronically or by mail using IRS Form 4868, with electronic filing strongly encouraged due to processing delays with mailed forms.
• Automatic extensions are available for certain groups, such as U.S. citizens living abroad or military personnel in combat zones, but interest on unpaid taxes still accrues.