How to file a tax extension

Steps to File a Tax Extension for an Individual Client

To file a tax extension for an individual client, follow these steps:

1. Determine Eligibility for Automatic Extension

- Verify if the client is eligible for an automatic extension. Special rules may apply if they are serving in a combat zone, living outside the United States, or affected by federally declared disasters.

2. Estimate and Pay Taxes Owed

- Calculate an estimate of any tax liability the client may owe for the year.

- Advise the client to pay the estimated amount owed to avoid potential penalties and interest. Payment can be made using various methods such as IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or by credit or debit card.

3. Choose the Method of Requesting an Extension

- Option 1: Pay the estimated tax owed using an online payment option and select that the payment is for an extension. No separate extension form is required, and the client will receive a confirmation number.

- Option 2: Use IRS Free File to electronically request an automatic tax-filing extension.

- Option 3: File Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by mail, online with an IRS e-filing partner, or through a tax professional.

4. Submit the Extension Request by the Tax Filing Due Date

- Ensure that the extension request is filed no later than the regular due date of the client's return, typically April 15th.

5. Confirm Extension Approval

- If the client used an online payment option or IRS Free File, retain the confirmation number for their records.

- If Form 4868 was filed, ensure that the client receives confirmation that the IRS has accepted the extension request.

6. File the Tax Return by the Extended Due Date

- The extension provides additional time to file the client's tax return, not to pay any taxes owed. The new deadline to file is typically October 15th. If this date falls on a weekend or legal holiday, the due date is delayed until the next business day.

7. Monitor for Special Circumstances

- Stay informed about any special extensions or relief provided by the IRS due to disasters or other extraordinary circumstances that may affect the filing and payment deadlines.

Additional Information

- It's important to note that an extension to file does not grant an extension of time to pay taxes owed. Clients should be advised to pay as much as possible by the original due date to minimize interest and penalties.

- For clients who are in certain disaster areas, check if they need to submit an extension request or if they qualify for automatic relief.

By following these steps, you can assist your clients in successfully obtaining an extension to file their individual tax returns.

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Sources:

Extension of Time To File Your Tax Return | Internal Revenue Service 2024-08-03

Get an extension to file your tax return - Internal Revenue Service 2024-08-03

Serve Your Clients - Internal Revenue Service 2024-08-01

Data theft information for tax professionals | Internal Revenue Service 2024-08-02

About Tax Transcripts | Internal Revenue Service 2024-08-02

About Form 4868, Application for Automatic Extension of Time to File U ... 2024-08-03

Safeguarding Taxpayer Data - Internal Revenue Service 2024-08-03

Make a complaint about a tax return preparer | Internal Revenue Service 2024-07-29

Let us help you | Internal Revenue Service 2024-08-03

EFTPS: The Electronic Federal Tax Payment System - Internal Revenue Service 2024-08-03