46.3 Applying for an Extension

If you cannot file your return on time, apply by the due date of the return 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.

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 2012 return if you file Form 4868 by April 15, 2013. The extension gives you until October 15, 2013 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 2012 taxes due after April 15, 2013.

You may file Form 4868 electronically using tax preparation software or your tax preparer may file it electronically for you. You may use a credit card or debit card (a fee will be charged) to make a tax payment or you can make a payment through the Electronic Federal Tax Payment System (EFTPS); for details go to www.irs.gov/e-pay. When you pay by credit or debit card, or EFTPS, you get a confirmation number that you should keep for your records.

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.

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.

Planning Reminder

You Can Get a Six-Month Filing Extension

You can get an automatic six-month extension to file your 2012 return by filing Form 4868 by April 15, 2013. The extension is for filing only and does not extend the time to pay your taxes for 2012.

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Interest and penalty for late payment.

You have to pay interest on any 2012 tax not paid by April 15, 2013, even if you obtain a filing extension. In addition, if the tax paid with Form 4868, plus withholdings and estimated tax payments for 2012, is less than 90% of the 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.

Abroad on April 15, 2013.

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, 2013, you either must submit a claim for the automatic six-month filing extension on Form 4868, or request an extension along with a payment made by EFTPS, credit card or debit card (see above).

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, 2013. If you qualify, you are allowed an automatic two-month extension without having to request it, until June 17, 2013. The two-month extension is for filing your return and also paying 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 17, 2012. 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 17, 2013.

If you are eligible for the two-month extension but expect to qualify for the foreign earned income exclusion (36.3) under the foreign residence or presence test after June 17, 2013, you can request on Form 2350 an extension until after the expected qualification date; see 36.7.