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You can receive an extension of time to file your return. Different rules apply depending on whether you live inside or outside the United States.

Inside the United States. You can receive an automatic 4month extension to file your return if by the regular due date you do any of the following.

• File a paper Form 4868.

• File Form 4868 by phone or over the Internet through one of the service providers listed in the instructions for Form 4868.

• Pay part or all of your estimate of income tax due electronically by using a credit card or by authorizing an electronic funds withdrawal from your checking or savings account. (If you use one of these options, you do not have to file Form 4868.)

The extension of time to file is automatic, and you will not receive any notice of approval. However, your request for an extension will be denied if it is not made timely. The IRS will inform you of the denial.

<Caution> You cannot use the automatic extension if you choose to have IRS figure the tax or you are under a court order to file your return by the regular due date.

Payment of tax. An extension of time to file does not mean you have an extension of time to pay any tax due. You must estimate your tax due. You do not have to send in any payment of tax due when you file Form 4868. However, if you pay the tax after the regular due date, you will be charged interest from the regular due date to the date the tax is paid. You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due.

If you file Form 4868 electronically, you can make your tax payment by authorizing an electronic funds withdrawal (direct debit) from your checking or savings account or by using a credit card.

For more details on how to pay the tax due, see the Form 4868 instructions.

When you file your return. Enter the amount you paid on line 67, Form 1040. On Form 1040A, include the amount in the total on line 43. On Form 1040EZ, include the amount in the total on line 9. To the left of line 43 or line 9, enter “Form 4868” and show the amount paid.

Outside the United States and Puerto Rico. If you are a U.S. citizen or resident alien, you can qualify for an automatic extension of time until June 15 without filing Form 4868 (or making a payment) if either of the following situations applies to you.

1) You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or

2) You are in military or naval service on an assigned tour of duty outside the United States and Puerto Rico for a period that includes the entire due date of the return.

You will be charged interest on any amount not paid by the regular due date until the date the tax is paid. If you use this automatic extension, you must attach a statement to the return showing that you met the requirement. You can request an additional 2month extension to file by August 15, 2003 by filing a paper Form 4868 by June 16, 2003, for a 2002 calendar year tax return. Write “Taxpayer Abroad ”across the top of Form 4868.

Joint returns. For married persons filing a joint return, only one spouse needs to meet the requirements to take advantage of the automatic extension to June 15.

Separate returns. For married persons filing separate returns, only the spouse who meets the requirements qualifies for the automatic extension to June 15.

Additional extension beyond August 15. You can request an extension beyond the 4-month extension by filing Form 2688 or by writing a letter to the IRS. Except in undue hardship cases, this additional extension will be granted only if Form 4868 has already been filed. Form 2688 or your letter will not be considered if it is filed after the extended due date. If you file Form 2688 and are granted an extension and the IRS discovers that the information you gave was false or misleading, the extension is void. You may then be subject to a penalty for filing late.

<Tip> If you are unable to pay the tax owed by the end of the extension period, you may want to file Form 9465 to arrange an installment payment agreement with the IRS that reflects your ability to pay the tax owed.

Above Information Extracted from IRS Publication #3, Armed Forces Tax Guide