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New York
Tuesday, November 5, 2024

Do not Miss This Tax Deadline If You Filed for an Extension



When you utilized for an extension to your 2023 tax return and haven’t but accomplished your submitting, it is crunch time: The ultimate deadline for 2023 returns is on Tuesday, Oct. 15, and failure to file may lead to a penalty.

The IRS permits people to request a six-month extension from the usual tax return deadline of April 15—however this solely offers you further time to place collectively your paperwork. Any taxes owed are nonetheless due in April, after which you additionally start incurring curiosity and late charges. So if you have not filed or paid, you need to be making a plan to do each as quickly as doable.

The failure-to-file penalty is 5% of your unpaid taxes for any month or partial month that your return is late and is capped at 25% of your complete invoice. The failure-to-pay penalty is 0.5% of your unpaid taxes for any month or partial month that your invoice is late and can be capped at 25%, although additionally, you will accrue curiosity till your stability is paid in full. (Whereas you will get hit with each penalty varieties without delay, they partially offset each other: The failure to file penalty might be lowered by the quantity of the failure to pay penalty utilized in that month, so probably the most you will pay is 5%, reasonably than 5.5%.)

The IRS does provide each short- and long-term fee plans for those who aren’t capable of cowl your excellent taxes by the April 15 deadline, which provide you with a further 180 days or as much as 72 months, respectively. When you’ll nonetheless pay curiosity, the failure-to-pay penalty might be lowered by half so long as you are present in your plan. You possibly can set this up on-line.

Submitting extensions for pure disasters

Whereas most taxpayers who have been granted a submitting extension should get their returns in now, there are some exceptions for these positioned in areas affected by disasters, together with Hurricane Helene. Residents of and people with companies in Alabama, Georgia, North Carolina, and South Carolina and components of Florida, Tennessee, and Virginia who had accepted extensions now have till Might 1, 2025 to submit their 2023 tax returns. This deadline additionally robotically applies to 2024 returns.

Taxpayers in 25 states are presently eligible for extensions previous Oct. 15—the IRS has extra data on who qualifies its web site.

Be aware that identical to the usual extension, disaster-related extensions don’t relieve the duty to pay your tax invoice on time. It applies solely to the submitting of your return.



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