Individuals can request an automatic extension of time to file a federal return using Form 4868, and many businesses use Form 7004. An extension moves the filing deadline, typically by six months for individuals, but it does not extend the time to pay. Tax owed is still due by the original deadline, and interest and penalties can apply to unpaid amounts.
Extensions are a normal part of practice management. They let a firm handle returns that are waiting on late documents, such as investment statements or partnership schedules, without rushing. Tracking which engagements are on extension, and which clients made payments with their extension, is an important part of the season's workflow.