Ravi is self-employed and knows he will have a balance due on his 2024 return, but he is unsure how much. He cannot file his tax return by the original due date because he needs more time to locate and organize his tax records. Which of the following actions is most appropriate for Ravi?

Question

Ravi should calculate his estimated balance due. He should then complete and file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, and include a payment for the estimated balance due no later than April 15th. After April 15th, he should file his return no later than the extension deadline of October 15th.
Ravi should estimate what his income and expenses are, file his return, pay the balance due by the original due date of April 15th, and amend the return later.
Ravi should file Form 4868 by April 15th to extend his return until October 15th. After April 15th, he should file his return and pay his balance due no later than the extension deadline of October 15th.
Since extensions are automatic, Ravi is not required to do anything. He can simply file his tax return and pay his balance due by October 15th.

Answer 1

The most appropriate action for Ravi is:

Ravi should calculate his estimated balance due. He should then complete and file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, and include a payment for the estimated balance due no later than April 15th. After April 15th, he should file his return no later than the extension deadline of October 15th.

This option is the best because it allows Ravi to formally request an extension while also ensuring he pays any estimated taxes owed by the original deadline to avoid potential penalties and interest. Filing Form 4868 gives him until October 15th to actually submit his return, but he should still pay any estimated balance due by April 15th.