Form 4868 is used to file a request for an extension on or before April 15th of the current tax year to get a four-month extension with form 1040, 1040A, or 1040 EZ. You have to send in at least 90% of the estimated tax due from your client in order to not incur any late payment penalties by the end of the extension. After you have filed your client's tax return, they will then be responsible for paying the remainder of the taxes that they owe.
Interest is usually charged on the amount of the unpaid tax from the due date of the return. If the initial four-month extension does not allot your client enough time in which to complete their tax return, they may opt to request a further two-month extension from the IRS.
Conditions under which they automatically qualify for the extension without filing the Form 4868 are the following:
·Your client is a US citizen or a legal resident
·Your client is residing outside the United States and Puerto Rico and are conducting his or her principal trade or business there
·Your client is on active duty with the US military or naval forces outside of United States and Puerto Rico.