What an extension does
Form 4868 gives you an automatic extension of time to file your federal return. For the 2026 tax year, it moves the filing deadline from April 15, 2027 to October 15, 2027.
What it does not do is give you more time to pay. Any tax you owe is still due on April 15, 2027. If you pay later, you owe interest and a late-payment penalty on the unpaid amount, even with an extension.
How to get one
You have three simple options, all by April 15, 2027:
- Pay all or part of your tax electronically and mark it as an extension payment. With IRS Direct Pay, EFTPS or a debit or credit card, choose “extension” as the reason for the payment. The IRS then treats it as your extension request; you do not need to file a separate Form 4868.
- E-file Form 4868 with tax software or a tax professional.
- Mail a paper Form 4868 to the IRS address listed in its instructions.
On Form 4868 you estimate your total tax for the year and how much you have already paid. Estimate carefully, and pay as much of the balance as you can.
What late filing and late payment cost
| Rate | Maximum | |
|---|---|---|
| Failure to file | 5% of the unpaid tax per month or part of a month | 25% |
| Failure to pay | 0.5% of the unpaid tax per month or part of a month | 25% |
| Interest | The IRS underpayment rate (7% a year for the quarter starting October 1, 2026), compounded daily | None |
When both penalties apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty. And if your return is more than 60 days late, the failure-to-file penalty is at least $535 or 100% of the tax you owe, whichever is less.
An example
A freelancer owes $3,000 for 2026 and pays it 86 days late, in July.
| No extension, return filed in July | Extension filed by April 15, 2027 | |
|---|---|---|
| Failure-to-file penalty | $535.00 | $0 |
| Failure-to-pay penalty | $45.00 | $45.00 |
| Interest | $49.88 | $49.88 |
| Total | $629.88 | $94.88 |
The extension alone saves $535.00, because the failure-to-file penalty is ten times the failure-to-pay penalty per month, and here the $535 minimum applies. The lesson: always file on time or get an extension, even if you cannot pay. Paying on April 15, 2027 would have avoided the rest.
If you cannot pay everything
- File on time or extend anyway. It avoids the larger penalty.
- Pay what you can by April 15, 2027. Penalties and interest apply only to the unpaid balance.
- Ask for a payment plan. Individuals can apply online; see our IRS payment plan guide. While an approved installment agreement is in effect, the failure-to-pay penalty drops to 0.25% per month if you filed on time. Interest still applies.
Extensions and your self-employed plans
- A SEP IRA can be set up and funded up to the due date of your return including extensions, so an extension also gives you until October 15, 2027 for your 2026 SEP contribution. See SEP IRA vs solo 401(k).
- Estimated taxes for the new year do not wait for your extension: keep making your quarterly payments on time. Our quarterly estimated tax calculator helps you plan them.
To estimate what you will owe before April 15, 2027, use our 1099 tax calculator.