As a tax expert, one of the many forms that I frequently encounter is IRS Form 4668. This form is an important document that serves as an application for an extension of time to file a return. In this article, we will explore the basics of IRS Form 4668, including who must apply for it, what information needs to be provided on the form, and its key features.
What is IRS Form 4668?
IRS Form 4668, also known as the Application for Extension of Time To File U.S. Individual Income Tax Return, is a form that taxpayers can use to request an extension of time to file their income returns. This form can be used by U.S. citizens, resident aliens, and certain nonresident aliens who need more time to prepare their tax returns.
It’s important to note that filing Form 4668 does not extend the time to pay any taxes owed. Taxpayers must still estimate their tax liability and pay any taxes owed by the original tax filing deadline (usually April 15th for most taxpayers). Failing to pay the estimated taxes owed by the original deadline can result in penalties and interest charges.
Who must apply for IRS Form 4668?
As mentioned earlier, any U.S. citizen, resident alien, or certain nonresident alien who needs more time to prepare their tax returns can apply for IRS Form 4668. This includes individuals who:
- Are unable to file their tax returns by the original deadline due to a valid reason, such as a medical emergency or natural disaster.
- Are out of the country on the original tax filing deadline and qualify for an extension under the “bona fide residence” or “physical presence” test.
- Need more time to gather information, such as tax forms or other documents required to file their tax returns accurately.
It’s important to note that taxpayers can request an automatic extension of six months by using IRS Form 4868, which is a simpler form than Form 4668. However, if a taxpayer needs additional time beyond the six-month extension provided by Form 4868, they must use Form 4668 to request the additional time.
What are the lines to complete the IRS Form 4668?
IRS Form 4668 consists of several lines that taxpayers must complete accurately to request an extension of time to file their tax returns. Here is a breakdown of the lines on Form 4668:
Line 1: Taxpayer’s name and address
On this line, taxpayers must provide their full legal name and current address, including the city, state, and ZIP code.
Line 2: Social Security Number or Individual Taxpayer Identification Number
Taxpayers must provide their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) on this line. This number is used to identify the taxpayer and link the extension request to their tax return.
Line 3: Estimated tax liability
Taxpayers must estimate their tax liability for the current tax year and enter the total amount on this line. This is the amount of tax they expect to owe for the year.
Line 4: Total payments and credits
Taxpayers must enter the total amount of payments and credits they have made for the current tax year on this line. This includes any federal income tax withheld from their paychecks, estimated tax payments, and any credits they are claiming.
Line 5: Balance due or overpayment
This line calculates the difference between the estimated tax liability and the total payments and credits. If the result is a negative number, the taxpayer has overpaid and is entitled to a refund. If the result is a positive number, the taxpayer owes additional taxes.
Line 6: Amount of extension requested
Taxpayers must enter the amount of additional time they are requesting to file their tax return on this line. This amount cannot exceed six months beyond the original tax filing deadline, unless the taxpayer meets certain criteria, such as being out of the country on the original deadline.
Line 7: Explanation for requesting an extension
On this line, taxpayers must provide a brief explanation for why they need an extension of time to file their tax returns. This can include reasons such as a medical emergency, natural disaster, or difficulty in obtaining necessary tax forms or documentation.
Line 8: Signature and date
Finally, taxpayers must sign and date the form on this line to certify that the information provided is accurate and complete.
Features of IRS Form 4668
Here are some key features of IRS Form 4668 that taxpayers should be aware of:
- It is important to file the form on time: IRS Form 4668 must be filed by the original tax filing deadline, which is usually April 15th for most taxpayers. Failure to file the form on time can result in penalties and interest charges.
- It only extends the time to file, not to pay: Filing Form 4668 only extends the time to file a tax return, not the time to pay any taxes owed. Taxpayers must still estimate their tax liability and pay any taxes owed by the original tax filing deadline to avoid penalties and interest charges.
- It can be filed electronically: Taxpayers can file Form 4668 electronically using the IRS’s e-file system. This can make the process quicker and more convenient for taxpayers.
- It can be used by certain nonresident aliens: Nonresident aliens who are required to file a U.S. tax return can use Form 4668 to request an extension of time to file their tax return.
- It can only be used once per tax year: Taxpayers can only request an extension of time to file their tax return using Form 4668 once per tax year. If additional time is needed beyond the six-month extension provided by Form 4668, taxpayers must contact the IRS to request additional time.
Do not forget to extend the declaration submission lines!
In conclusion, IRS Form 4668 is a valuable tool that taxpayers can use to request an extension of their tax return deadline. This form can be used by US citizens, resident aliens, and certain nonresident aliens who need more time to prepare their tax returns. Taxpayers need to fill out the form correctly and submit it on time to avoid penalties and interest.
Although Form 4668 provides a six-month deadline for filing tax returns, it is important to note that it only extends the filing time, not the time for paying taxes due. Taxpayers must still assess their tax liability and pay any taxes before the original tax filing deadline to avoid penalties and interest.
In general, taxpayers who cannot file their returns by the original filing deadline should consider filing Form 4668 to request an extension. By doing so, taxpayers can avoid unnecessary penalties and interest charges and make sure they have enough time to file an accurate and complete tax return.
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