Like your income tax return itself, this
one-page form must be mailed to the IRS and postmarked by April 15th. This filing
gives you an automatic 6 month extension of time (to October 15th) to file your
return. Please bear in mind that this extension is for the filing of the return
It does not apply to any payment you owe. That's correct. If it
is likely that you owe money for the year, you must make a reasonable estimate of the
amount owed and send it with your extension form.
If you do
not send the payment in or significantly underestimate what you owe, the IRS can deny the
extension retroactive to April 17th. If this happens, you will be charged a late
filing penalty of 5% per month (not to exceed 25%) and possibly a failure to pay penalty
of .5% per month.
Interest would also be tacked on in addition to these
penalties! As you can easily see, it is generally far better to borrow the money and
pay the tax when it is due rather than risk underpaying with an extension as far too many
taxpayers attempt to do.