Clergy Tax Facts®
Clergy Tax Extension
6 Month 1040 Filing Extensions
Under new regulations released by the Treasury Department and the Internal Revenue Service, most 1040 clients will be eligible to request an automatic, six-month tax-filing extension.
Beginning Jan. 1, 2006, this new full six-month tax-filing extension will be available to most individual taxpayers, without a reason or even a signature. This will replace the existing two-step process under which an automatic extension was only allowed for four months, generally until Aug. 15. As in the past, a tax-filing extension does not extend the tax-payment deadline. The new 6 month extension request will continue to be filed on Form 4868, and Form 2688 will be eliminated.
Form 4868
If you cannot file your 2006 return by the due date, you may be able to get an automatic 6-month extension of time to file. To get the automatic extension, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
Example. If your return is due on April 15, 2008, you will have until October 15, 2008, to file.
When to file
You must file Form 4868 by April 15, 2008. You can file Form 1040EZ, Form 1040A, or Form 1040 any time before the 6-month extension period ends.
Time to pay not extended
An extension of time to file is not an extension of time to pay. You must make an accurate estimate of your tax for 2006 and send any necessary payment with your Form 4868. If you find you cannot pay the full amount due with Form 4868, you can still get the extension. You will owe interest on the unpaid amount.
You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due.
Interest and penalties are assessed (charged) from the original due date of the return, which, for most taxpayers, is April 15, 2008.