As we grind ever closer to the impending 2009 IRS Income Tax filing deadline on April 15th, more and more people have been asking about how to get an extension.  The good news is the process is extremely simple.  The bad news is that though an extension will get you more time to file, if you owe money you’ll still have to pay by April 15th.

How to Get an Extension

According to the IRS website, if you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return by the due date for filing your calendar year return (usually April 15) or fiscal year return. This form is also available en español.

Why File an Extension

The obvious reason to file an extension is that you need more time to accurately complete your return.  Rushing to finish, only to submit a return with many mistakes is foolish if you can get an extension.  As you’ll see below, delaying payments is not a reason to file an extension.  If you expect difficulty in paying any taxes due, contact the IRS to discuss appropriate payment plans and terms.

What You Need to Know About an Extension

As mentioned previously, the most important thing to remember about filing an extension is that more time to file your return does not grant you any extension of time to pay your tax liability.  So if you end up owing money along with your return, that amount must be paid by the filing deadline (usually April 15th) even if you are granted the automatic filing extension.  You should estimate the amount due and send in a check along with Form 4868.  If you pay too little, you’ll have to pay interest on whatever amount you fail to pay by April15.  If you pay less than 90 percent of the tax you owe, you’ll also end up owing a penalty of half a percent of the underpayment for every month until you pay the balance. For example, if you pay $1000 less than you should have by April 15th, you’ll be assessed a penalty of $5 a month, until you pay the balance in full.

Though every attempt is made to ensure the accuracy of the information presented here, consult with the IRS or your tax adviser for advice tailored to your specific situation before taking any action.  Filing your income tax return isn’t the the most pleasant experience, but being granted an extension may help to reduce some of the stress that normally accompanies the process for last minute filers.  One last piece of information of note: There are some companies out there that will charge you to obtain an extension on your behalf.  Since it’s free and easy to submit the form yourself, paying for such a service is a waste.