01/25/2022
If you can’t finish your return on time, make sure you file Form 4868 by April 18, 2022. Form 4868 gives you an extension of the filing deadline until October 17, 2022. On the form, you need to make a reasonable estimate of your tax liability for 2021 and pay any balance due with your request. Requesting an extension on time is especially important if you end up owing tax to the IRS.
If you file and pay late, the IRS can slap you with a late-filing penalty of 4.5% per month of the tax owed and a late-payment penalty of 0.5% a month of the tax due.
The maximum late filing penalty is 22.5%, and the late-payment penalty tops out at 25%.
By filing Form 4868, you stop the clock running on the costly late-filing penalty.