Request an Extension

• If you anticipate that you may be filing a late return, file IRS Form 4868 to request an automatic extension of time to file. This will extend the deadline for filing your return until October 15. Although you will not be assessed a failure to file penalty during this period, you will be assessed a failure to pay penalty. This is because an extension of time to file is not an extension of time to pay. Even if you file an extension, the IRS expects full payment of any tax owed on or before April 15. The failure to file penalty is 5 percent of the tax owed for each month the tax is late while the failure to pay penalty is 1/2 of 1 percent for each month the tax is not paid.
  
  Always keep in mind that there are no penalties assessed for taxpayers who are owed a refund. However, if your return is not filed within three years of the due date, you will forfeit your right to the refund because of the IRS's statute of limitations. The IRS statute requires that refunds only be issued to taxpayers who file their return within three years of the original due date. The only exception to this rule is for taxpayers who originally owed money to the IRS for the tax year in question. In this event, the statute of limitations is extended to the date of the last payment.
  
  

Request an Abatement

• If you filed late due to a reasonable cause -- for instance, you were in a combat zone, ill, incarcerated or experienced a circumstance that prevented you from filing a timely return -- use IRS Form 843 to request that all penalties be removed from your balance. The IRS will usually grant a one-time abatement for taxpayers who usually file on time.
  
  

Taxpayers Living Abroad

• Also, remember that if you are an American citizen or resident alien living abroad, you are automatically afforded an additional two-month extension to file.