IRS Tax Tip: Apply for a Tax-Filing Extension

Editor’s note: The following information is provided by the IRS.

With less than a week until the April 17 tax deadline, the Internal Revenue Service reminds anyone running out of time that they can get an automatic six-month tax-filing extension. The easiest way to get an extension is online through the Free File link on IRS.gov.

In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an automatic extension using Form 4868. Filing this form gives taxpayers until Oct. 15 to file a return.

This is an extension of time to file, not an extension of time to pay.

In  Minnesota, about 143,600 taxpayers are expected to request an extension of time to file their tax return.

“Typically, we see around 25 to 30 percent of returns filed in the remaining weeks of the filing season,” said Carrie Resch, IRS spokesperson.

To get the extra time to file, taxpayers must estimate their tax liability on Form 4868 and should pay any amount due by the April 17 deadline. Taxpayers can e-pay what they owe using the Electronic Federal Tax Payment System (EFTPS), by electronic funds withdrawal or with a credit or debit card. Those who pay by check or money order should make the payment to the “United States Treasury.”

By filing a return or properly filing Form 4868, a taxpayer will avoid the late-filing penalty, normally 5 percent per month based on the unpaid balance, which applies to returns filed after the deadline.

In addition, any payment made with an extension request will reduce or eliminate interest and late-payment penalties that apply to payments made after April 17. The current interest rate is 3 percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month. The maximum rate for both penalties is 25 percent.

Besides Free File, taxpayers can choose to request an extension through a paid tax preparer, using tax-preparation software or by filing a paper Form 4868, available on IRS.gov. For tax assistance in Apple Valley, search the local business directory on .

Some taxpayers get more time to file without having to ask for it:

• Members of the military on duty outside the U.S., as well as U.S. citizens and resident aliens living and working abroad have until June 15 to file and pay, though interest still applies to payments made after April 17.

• Members of the military and others serving in Iraq, Afghanistan or other combat zone localities can typically wait until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.        

Some taxpayers may also get additional time to pay without penalties through the IRS's expanded Fresh Start Initiative. This includes some people who were unemployed in 2011 or 2012 and self-employed individuals whose business income dropped.

Details on all filing and payment options are on IRS.gov.

Also see information from the IRS on .