If you are unable to file your tax return by the deadline (usually April 15th), you can file for a tax extension. This will give you an extra six months to file your return, but it is important to note that this is only an extension of time to file and not an extension of time to pay your taxes.

Here are some important things to know when filing a tax extension:

• File Form 4868: To request a tax extension, you must file Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. This form can be filed electronically or by mail. If you owe taxes, you should estimate the amount owed and pay it with the extension request.
• Payment of Taxes Owed: Filing an extension only extends the time to file your tax return and does not extend the time to pay any taxes owed. If you owe taxes, it is best to pay as much as possible by the deadline to reduce any potential penalties and interest charges.
• State Extension Requirements: Some states have their own extension forms and deadlines, so it’s important to check the requirements for your state.
• No Extension for FBAR: If you have foreign bank accounts and need to file a Report of Foreign Bank and Financial Accounts (FBAR), you cannot file an extension for this report. The FBAR must be filed by June 30th.
• Penalties for Late Filing: If you do not file an extension and miss the tax return deadline, you may be subject to penalties and interest charges. The failure-to-file penalty is usually 5% of the unpaid taxes for each month or part of a month that a return is late, up to a maximum of 25%.
• Late Payment Penalties: If you owe taxes and do not pay by the deadline, you may be subject to a late payment penalty. This penalty is usually 0.5% of the unpaid taxes for each month or part of a month that the taxes are not paid, up to a maximum of 25%.

In conclusion, filing a tax extension can be a helpful option for those who are unable to file their tax return by the deadline. However, it’s important to understand that this is only an extension of time to file and not an extension of time to pay any taxes owed. If you owe taxes, it’s best to pay as much as possible by the deadline to reduce any potential penalties and interest charges. Be sure to also check the requirements for your state and understand the potential penalties for late filing and payment.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.