The information in this article is up to date for tax year 2023 (returns filed in 2024).
Your tax return must be postmarked by April 15th to be considered on time. If you’re unable to meet the deadline, the best thing to do is request a tax extension. This will give you more time to file an accurate return and can possibly minimize penalties. However, there are some things you need to be aware of before making your decision.
You only have until April 15th to request an extension
Requesting a federal tax extension is fairly easy and free. Simply submit Form 4868 to the IRS via mail or electronically. It’s highly recommended that you enclose a payment for any taxes due to minimize penalties. You must submit your request no later than April 15th. Unlike with your federal taxes, there’s no one size fits all rule when it comes to obtaining a state tax extension. Some places automatically give you an extra six months to file while others require you to request an extension. So, check your state government website for more details.
The extended tax deadline is October 15th
Although filing a tax extension does buy you some extra time, that doesn’t mean you can drag your feet forever. Your return must be in the IRS’ hands no later than October 15th. The fastest and easiest way to do your taxes is with ezTaxReturn. Since 1999, we’ve helped millions of taxpayers file with ease.
Filing a tax extension doesn’t give you extra time to pay
A popular misconception about tax extensions is that it gives you more time to pay any taxes you owe. We hate to burst your bubble, but that’s not true. The IRS still expects their money by April 15th. Even if you can’t afford to pay the entire bill, at least pay as much as you can by the deadline. Otherwise, you’ll begin accumulating interest and penalties on your unpaid balance once the clock strikes midnight. The late payment penalty starts at 0.5% of your taxes each month and can climb up to 25%. Meanwhile, the interest rate is the federal short-term rate plus 3 percent, and it compounds daily.
Miss the extended deadline and you may face a late filing penalty
If you requested a tax extension and miss that deadline too, prepare to be hit with hefty fines. The late filing penalty is 5% of your unpaid taxes each month, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty is $485 or 100% of your unpaid balance, whichever amount is smaller.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
