Filing federal income tax returns is a crucial responsibility for U.S. taxpayers. Understanding the implications of filing for an extension, including potential penalties, is essential to ensure compliance and avoid unnecessary costs.
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Understanding the tax filing deadline
For the 2024 tax year, the deadline for filing federal income tax returns is Tuesday, April 15, 2025. This date is commonly referred to as “Tax Day.” It’s important to note that this deadline applies to most individual taxpayers. However, if April 15 falls on a weekend or a legal holiday, the deadline is typically extended to the next business day.
What is a tax extension?
A tax extension allows taxpayers to extend the deadline for filing their federal income tax returns. By obtaining an extension, individuals have until October 15, 2025, to file their returns. It’s crucial to understand that an extension to file is not an extension to pay any taxes owed. Taxpayers are still required to pay their estimated tax liability by the original filing deadline to avoid penalties and interest.
This is a must-read: IRS Form 7004 Tax Extension in 2025: what is it, instructions, how to fill it out and where to apply.
How to request an extension
To request an extension, taxpayers can file Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” This form can be submitted electronically through various methods:
- Tax Software or IRS Free File: Taxpayers can use tax preparation software or the IRS Free File service to electronically request an automatic tax-filing extension.
- Electronic Payment Options: Making an electronic payment and selecting Form 4868 or “extension” as the payment type also grants an automatic extension. In this case, there’s no need to file Form 4868 separately.
Penalties for late filing and late payment
Failing to file a tax return or an extension by the April 15 deadline can result in a failure-to-file penalty. This penalty is typically 5% of the unpaid taxes for each month or part of a month that the return is late, up to a maximum of 25%. If the return is more than 60 days late, the minimum penalty is either $510 or 100% of the unpaid tax, whichever is less.
Additionally, not paying the owed taxes by the original filing deadline can lead to a failure-to-pay penalty. This penalty is generally 0.5% of the unpaid taxes for each month or part of a month after the due date, up to 25% of the unpaid taxes. Interest also accrues on unpaid taxes from the due date until the date of payment.
Benefits of filing an extension
Filing an extension provides additional time to accurately prepare and file your tax return, helping to ensure all necessary information is included and reducing the likelihood of errors. This can be particularly beneficial for taxpayers with complex financial situations or those awaiting important tax documents.
Special considerations for certain taxpayers
Some taxpayers may automatically qualify for additional time to file and pay taxes without the need to file Form 4868:
- Disaster victims: Taxpayers affected by federally declared disasters may receive extended deadlines. For example, victims of certain wildfires in California had deadlines postponed to October 15, 2025.
- Overseas taxpayers: U.S. citizens and resident aliens living abroad, including military personnel, may qualify for automatic extensions.
