According to the IRS website, if you need more time to sort out your individual tax return, you can put in for an extension for free. This does not provide you extra time to pay your taxes, just to figure out your tax return. The deadline for this is the same as tax day this year – April 18, 2016 or April 19th if you live in Maine or Massachusetts (because of Patriots Day). Usually, Tax Day falls on April 15th, but this year, Emancipation Day in Washington, DC pushed it to the 18th. The deadline is at midnight for filing your tax return extension and paying your taxes.
According to Turbo Tax, if you fail to file your return or extension by April 18, 2016, you will be subject to late payment penalties, which are 5% of the amount you owe for each month of late payment, up to a maximum of 25%.
When filing for a free tax return extension, you will have six extra months to file your return, with October 17, 2016 as your new deadline.
If you would like to e-file for an extension via Free File Software, there are many options on the official IRS website. Click here to check them out.
Otherwise, you can fill out the Form 4868, which is the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Click here to access the form.
In addition, you can also get an extension if you pay all or some of your estimated income tax due. Then indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit/debit card. The IRS explains that by doing this you will not have to file a separate extension form. You will get a confirmation number for your records.
If you are a business or corporation, you will want to fill out a Form 7004 (Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns) or Form 1138 (Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback).
Now, if you do not fit under the above categories, below are the remaining possible forms to fill out for an extension. You can see if one of these applies.
Form 2350 Application for Extension of Time to File U.S. Income Tax Return (For U.S. Citizens and Resident Aliens Abroad Who Expect To Qualify for Special Tax Treatment)
Form 4768 Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes
Form 5558 Application for Extension of Time to File Certain Employee Plan Returns
Form 8809 Application for Extension of Time to File Information Returns
Form 8868 Application for Extension of Time To File an Exempt Organization Return.
Form 8892 Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax