Failure to efile a tax return or an IRS federal tax extension can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more.
There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund. In order to receive a refund, the return must be filed within three years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later. The only ways to avoid penalties is to efile your tax return and pay all taxes due by April 17.
Rules for Filing Federal Tax Extension
- Extensions must be filed by April 17th.
- If you are due a tax refund, it is not necessary to file an extension. There is no penalty for late filing unless you owe the IRS.
- If you electronically file your return on April 17 and the IRS sends it back for corrections, you have until April 20 to get your return retransmitted and accepted by the IRS.
- You must still pay at least 90% of your total tax due by April 17th in order to avoid penalties for late payment.
- Retain the paper copy of Form 4868. Once you file your Federal tax extension online, there is no need to mail the paper copy.
- You must file the federal income tax extension before the deadline to file taxes, April 15. You can not file a federal income tax extension after that date.