Question

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?
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 first option is most appropriate.

Why: Form 4868 only extends the time to file the return, not the time to pay tax. Ravi should estimate his tax liability, file Form 4868 and pay the estimated balance by April 15 to avoid late‑payment penalties and interest. He can then file the completed return by the extension deadline (typically October 15).

Practical tips: pay electronically (Direct Pay, EFTPS, or card) if possible; if he cannot estimate exactly, pay as much as he reasonably can by April 15 (and finalize the balance when he files). Also consider the underpayment “safe harbor” rules (pay 100% of prior year tax, or 110% if AGI was high, or 90% of current year) to avoid estimated‑tax penalties.