The date of April 15 is ominous in the United States, as it is the deadline the government gives to file and pay federal income tax. The federal government does offer the option of delaying your income tax filing by allowing you to file for an extension. It is important to remember that just filing the paperwork does not mean you automatically get an extension on filing your taxes. The government still has the option of denying your request.

Form to File

The proper form to file for an extension on your federal income tax is form number 4868. You can find the form online at the IRS website, or you can pick one up at your local tax form supplier, such as the public library. In order for the extension to be valid, the government must receive your completed form 4868 by April 15. The extension given is six months, which would move your filing date to October 15. If you know that you will be needing a six-month extension prior to April 15, then it may be helpful to get your form 4868 in as soon as possible. This way you are not wondering if your extension has been accepted or not and whether or not you will be penalized for filing late.

Payment Due

According to SavingtoInvest.com, an extension to file your taxes is only permission to delay the official filing of your tax return forms. If you know you will be owing the IRS money as opposed to receiving a refund, then you still need to make your payment in full by April 15 to avoid any penalties and to also avoid the accrual of interest on the amount you owe. Form 4868 allows you to move the date of filing, but it does not affect the due date for payment of taxes. If you wait to pay your taxes on October 15, then you could be subject to penalties as much as 25% of the total amount due at a rate of 1% per month.

Option

If you are considering asking for an extension on your federal income taxes because you cannot pay the full amount, then consider requesting an installment payment plan rather than an extension. According to the IRS, if you owe $25,000 or less in taxes, then you can ask to have your payments broken down into monthly payments. There is a series of fees involved that include a service fee to set up your account and a convenience fee to allow you to do an installment plan. But if you are unable to pay your full federal income tax, then contact the IRS to negotiate an installment payment plan prior to April 15 to avoid penalties and interest.

Source:

SavingToInvest.com: Can't Afford to Pay My Taxes!

GovSpot.com: Tax Center

CashMoneyLife.com: How to File a Federal Tax Extension

More Information:

IRS: Extension of Time to File Your Tax Return

IRS: Installment Payment Arrangements