To file a tax extension, submit IRS Form 4868 by April 15 and you get an automatic six-month extension to send in your federal return, moving the filing deadline to October 15. The extension is automatic in the sense that the IRS does not have to approve it, as long as you file on time with a reasonable estimate of what you owe. One thing the extension does not do: give you more time to pay. Any tax you owe is still due April 15, and interest and a late-payment penalty begin accruing the next day on whatever is unpaid.
File the Extension, Pay What You Can
Individual taxpayers use Form 4868 to request the six-month extension. Businesses filing corporate or partnership returns use Form 7004 for the same purpose. Both forms are on the IRS website.
You will need your Social Security number (or Employer Identification Number for a business) and an estimate of your total tax liability for the year. To build the estimate, subtract your credits, withholding, and any estimated tax payments you have already made from the tax you expect to owe. Getting this roughly right matters. A wildly low number gives the IRS grounds to invalidate the extension later, and it also means you will underpay in April and rack up larger interest charges.
Whatever you can pay by April 15, pay. Every dollar sent by the original deadline is a dollar that does not accrue interest or late-payment penalty, and paying something does not weaken the extension.
Ways to Submit Form 4868
- IRS Free File: if your adjusted gross income is $89,000 or less, you can e-file Form 4868 at no cost. Start at IRS.gov/freefile rather than going directly to a partner’s commercial site.
- Electronic Federal Tax Payment System (EFTPS): making a payment through EFTPS and selecting the extension option counts as filing Form 4868. You get an acknowledgment number as your receipt.
- Mail: send a paper Form 4868 to the IRS processing center for your geographic area, listed in the form’s instructions. Certified mail creates proof of timely filing.
Electronic submissions return a confirmation or timestamp. If you file by mail, the postmark date is what counts. Miss April 15 for the extension itself and you get no extra time at all, so do not wait until the last hour.
How Close Your Estimate Has to Be
The IRS will not penalize you for underpaying estimated taxes if you have paid at least 90% of the tax shown on your current-year return, or 100% of the tax shown on last year’s return, whichever is smaller. If your adjusted gross income exceeded $150,000 in the prior year ($75,000 if married filing separately), the 100% figure jumps to 110%. Meeting either safe harbor protects you from the estimated tax underpayment penalty. It does not stop interest on any remaining balance.
What Happens if You Don’t Pay by April 15
Two separate penalties can apply to a late federal tax bill, and they run at very different rates.
- Failure-to-file penalty: 5% of the unpaid tax for each month or partial month the return is late, up to 25%. If the return is more than 60 days late, the minimum penalty is either $525 or 100% of the unpaid tax, whichever is less.
- Failure-to-pay penalty: 0.5% of the unpaid tax per month or partial month, also capped at 25%.
The filing penalty runs ten times faster than the payment penalty. Filing an extension eliminates the 5% monthly filing penalty entirely, which is the single strongest reason to file Form 4868 even when you cannot cover the bill. When both penalties would apply in the same month, the filing penalty is reduced by the payment penalty, so the combined rate is 5% per month rather than 5.5%.
On top of penalties, interest accrues on unpaid tax at the federal short-term rate plus 3%. For the first quarter of 2026, that rate is 7% per year, compounded daily. Interest cannot be waived, even under hardship provisions. It runs from the original due date of the return until you pay in full.
If You Can’t Pay by October Either
The IRS has structured options for taxpayers who owe more than they can pay. None of them stop interest, but they stop aggressive collection and, in some cases, cut the penalty rate.
Short-Term Payment Plan
A short-term plan gives you up to 180 days to pay your balance in full. There is no setup fee. Penalties and interest keep accruing, but the plan buys time without a longer commitment. Only individual taxpayers can apply for short-term plans online.
Long-Term Installment Agreement
If you owe $50,000 or less in combined tax, penalties, and interest, you can apply online for a long-term installment agreement with monthly payments. Setup fees vary by application method and payment method:
- Direct debit: $22 online, $107 by phone, mail, or in person. Low-income taxpayers pay nothing.
- Other payment methods (direct pay, check, card): $69 online, $178 by phone, mail, or in person. Low-income taxpayers pay $43, which may be reimbursed.
Once an installment agreement is approved, the failure-to-pay penalty drops from 0.5% per month to 0.25% per month, provided you filed your return on time (including with an extension). You can apply, check eligibility, and manage the plan through the IRS Online Payment Agreement tool.
Hardship Payment Extension (Form 1127)
If paying on time would force you to sell property at a fire-sale price or cause real financial devastation, Form 1127 lets you request a payment extension based on undue hardship. Undue hardship means more than inconvenience: you need to show substantial financial loss beyond a low bank balance.
The application requires a written explanation, a statement of assets and liabilities with book and market values, and an itemized list of income and expenses for the three months before the tax due date. File Form 1127 by the original return due date. If approved, the extension for tax shown on a return generally cannot exceed six months. For a deficiency assessed after an audit, the limit is 18 months, with a possible additional 12 months in exceptional circumstances. The IRS will not grant this extension if the deficiency resulted from negligence or fraud.
Currently Not Collectible Status
If your finances are genuinely dire, the IRS can mark your account currently not collectible. You have to show that after basic living expenses like housing, food, and transportation, there is nothing left for the tax debt. The IRS uses Form 433-A for individuals and Form 433-B for businesses to evaluate your complete financial picture.
This status stops levies, wage garnishments, and property seizures. The debt itself does not go away. Interest keeps accruing, and the IRS periodically reviews your returns to see whether things have improved. The balance stays on the books until you pay it, settle it, or the ten-year collection statute expires.
Offer in Compromise
An offer in compromise settles the tax debt for less than the full amount. The IRS accepts one when the offered amount represents the most it can realistically expect to collect within a reasonable timeframe. To be eligible, you must have filed all required returns, made required estimated payments, not be in an open bankruptcy, and (if you are an employer) have made tax deposits for the current and prior two quarters. The application requires Form 656, Form 433-A (OIC) for individuals, and a $205 application fee. Low-income taxpayers whose adjusted gross income falls below certain thresholds are exempt from both the application fee and the initial payment.
Most offers are rejected. If your income and assets suggest you could pay in full through an installment agreement, the IRS will steer you toward a payment plan instead.
Automatic Extensions in Special Situations
Some taxpayers get more time without filing Form 4868 at all.
Service members in designated combat zones receive automatic deadline extensions under 26 U.S.C. § 7508. The IRS disregards the entire period of combat zone service, plus 180 days after the last day in the zone, when calculating whether any tax action was timely. This covers filing, paying, claiming refunds, and responding to notices. No paperwork required.
U.S. citizens and resident aliens whose main home or duty station is outside the United States and Puerto Rico on the regular filing deadline get an automatic two-month extension to file and pay. For calendar-year filers, that moves the deadline from April 15 to June 15. You do not need Form 4868, but you should attach a statement to your return explaining that you qualified. Interest still runs from April 15 on any unpaid balance.
When the IRS announces tax relief for a federally declared disaster area, affected taxpayers get extended deadlines for filing, paying, and other tax actions. The specific relief varies by disaster and is posted on the IRS Newsroom page. These extensions apply automatically if your address of record is in the affected area.