Can you file a tax extension after the tax deadline?
There are only a few days left for taxpayers to submit their income tax returns. Find out until when it can be done without having to pay fines.
The 2024 tax season is coming to an end. For most filers, Monday, 15 April 2024, is the last day to turn in their 2023 tax returns on time. Due to the Patriot Day and Emancipation Day holidays, Maine and Massachusetts residents have until April 17 to do so.
Taxpayers who require more time to file their taxes can request a six-month extension until October 15, thus avoiding fines for late filing. This extension must be requested through the IRS Free File tool or by submitting Form 4868 before April 15. Again, this means no extension can be requested after today unless you are granted one automatically.
Who is granted an automatic extension?
Three main groups are granted automatic extension: active duty service members, citizens and US permanent residents living abroad, and those who live in federally declared disaster areas.
Filers must keep in mind that an extension only provides additional time for filing the return, but not for paying taxes. Most taxpayers ' tax debt is due on April 15.
IRS fines and penalties for not filing a return or paying taxes
If you fail to submit your tax declaration on time, you will be charged a penalty of 5% of the unpaid taxes each month. This penalty starts accruing one day after the deadline and accumulates until it reaches 25% of the taxes owed. If you don’t pay your taxes before the due date, you will be charged a monthly penalty of 0.5% of the unpaid taxes.
If both penalties apply, which means you failed to file your tax return and did not pay, 5% of the total fee will be charged.
If you file your tax return 60 days after the due date (April 15) or extension date (October 15), there is a minimum penalty for late filing. The minimum penalty is the lesser of $485 (for tax returns required to be filed in 2024) or 100% of the tax owed.
The IRS charges interest on penalties. The interest rate for underpayments is set quarterly, but interest is calculated daily. For the first quarter of 2024 (April through June), the non-payment interest rate for underpayments is 8%.
How to know if you owe a fine
When the IRS imposes a penalty, the tax agency mails a notice or letter to your address. This will give you information about the penalty, the reason for the charge, and what you should do next.
Although the recommendation is to file the return and pay taxes as soon as possible, the penalty for not filing the return is much greater than the penalties for non-payment of taxes, so filing is essential.
For more information, visit the penalties section of the IRS website.