Taxpayers facing tight deadlines and unexpected life events can benefit from filing a tax extension this year, according to recent guidance from tax professionals. As the April 15, 2026 deadline approaches, experts are encouraging individuals to consider requesting additional time to file their federal income tax returns. According to the IRS, approximately 10 million taxpayers traditionally file for a tax extension, though that number appears to be increasing as more people recognize the benefits of taking extra time to ensure accuracy.
As of early March, only 32.1 million taxpayers had filed their returns, representing less than 20% of the 164 million returns the IRS expects to receive by the standard deadline. Last year, the IRS received approximately 25 million fewer returns by mid-April compared to year-end totals, according to agency data, suggesting many taxpayers opted for extensions.
Why Taxpayers Should Consider Filing a Tax Extension
Tax professionals emphasize that requesting a tax extension is a straightforward process that requires no explanation to the IRS. The extension is automatically granted when taxpayers follow proper procedures, providing an additional six months until October 15, 2026 to submit their returns.
There are numerous legitimate reasons to file for additional time. Some taxpayers may still be waiting for essential tax forms, as certain documents such as Forms 1042-S, 1095-C, and some Forms 5498 may not arrive until well after the February deadline for W-2s. Additionally, beneficiaries of trusts or estates and shareholders in pass-through entities often must wait for Schedules K-1 before completing their returns.
However, life circumstances frequently create the need for extensions. Medical emergencies, family obligations, and other unexpected events can make meeting the April deadline challenging. The flexibility to file later allows taxpayers to submit complete and accurate returns rather than rushing through the process.
Common Scenarios Requiring Extensions
Business owners regularly request extensions due to the complexity of their returns and the timing of required documentation. Meanwhile, individuals funding Individual Retirement Accounts have until Tax Day to make contributions, which must be reported on their tax returns.
Taxpayers with more complicated situations this year, including cryptocurrency transactions, home sales, or inherited IRAs, may need additional time to gather documentation and calculate basis correctly. Taking time to review returns thoroughly can help avoid costly penalties down the line.
Natural disasters and emergencies can also create challenges. While federally declared disasters may trigger automatic extensions, other significant events might not, making it prudent for affected taxpayers to file for extensions proactively.
How to Request a Tax Filing Extension
Taxpayers have multiple options for requesting an extension. They can file electronically for free using IRS Free File, ask their tax preparer to submit the request, or make an electronic payment through Direct Pay, debit card, credit card, or digital wallet and designate it for an extension.
Alternatively, individuals can use commercial tax preparation software or complete and mail Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. The extension request must be postmarked or electronically accepted by the end of April 15, 2026 to be considered timely.
Certain taxpayers receive automatic extensions without filing Form 4868. U.S. citizens or residents living outside the country automatically qualify for a two-month extension until June 15, according to IRS regulations. Military personnel serving in combat zones typically receive at least 180 days after leaving the zone to file returns and pay taxes.
Critical Reminder About Tax Extension Payment Requirements
Tax experts stress that an extension to file is not an extension to pay. The payment deadline remains April 15, 2026 even when taxpayers receive additional time to file their returns. Individuals expecting to owe taxes should submit payment with their extension request to avoid interest charges and penalties.
The late payment penalty amounts to 0.5% of the tax owed after the due date, potentially reaching up to 25% of taxes owed. Additionally, the IRS charges interest on unpaid balances, with underpayment interest rates currently at 7%, according to the agency.
In some cases, taxpayers may qualify for penalty relief through First Time Abatement if they have a clean compliance history. This administrative waiver applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties for eligible taxpayers who make their first mistake.
If taxpayers discover errors before the filing deadline, including extensions, they can submit a superseding return to replace their earlier filing. After the deadline passes, amended returns using Form 1040X are required, though processing remains manual and can result in significant delays.
Tax professionals note that filing a complete and accurate return on extension is preferable to submitting a rushed, error-prone return by the standard deadline. Contrary to common concerns, statistics do not support the notion that filing for a tax extension increases audit risk, experts indicate.
