Can I Still File an Extension on My Taxes?
Filing a tax extension has its own deadline. If that date has passed, understand what it means for your return and the actions to take to manage your tax liability.
A tax extension provides additional time to submit your completed tax return, but it does not postpone the deadline for paying any taxes you owe. This guide explains the rules surrounding tax extensions, the consequences of a late filing, and the immediate actions you can take.
Understanding the Tax Extension Deadline
The ability to request a tax extension has a specific deadline that coincides with the original tax filing due date, typically April 15. To receive an automatic six-month extension to file, you must submit Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by this date. If the April 15 deadline has already passed, you can no longer file for an extension for that tax year.
An approved extension grants you until October 15 to submit your tax forms without incurring a penalty for filing late. However, it does not provide more time to pay your tax liability. Your tax payment is still due by the original April deadline, and any unpaid amount will begin to accumulate penalties and interest. Filing for an extension requires you to estimate your total tax liability for the year and pay that estimate by the April deadline to avoid underpayment penalties.
Consequences of Missing the Filing Deadline
Once the tax filing deadline passes without a return or an extension, the IRS can assess two separate penalties, in addition to interest on any unpaid balance. The failure-to-file penalty is calculated as 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty starts accruing the day after the tax filing due date and is capped at 25% of your unpaid taxes. If your return is more than 60 days late, the minimum penalty is the lesser of $510 or 100% of the tax you owe.
A separate penalty exists for failure to pay. This penalty is 0.5% of the unpaid taxes for each month or part of a month the taxes remain unpaid, also capped at 25% of your unpaid tax liability. Because the failure-to-file penalty is substantially higher, it is financially advantageous to file your return as soon as possible, even if you cannot afford to pay the full amount you owe.
Interest can be charged on underpayments and can also be applied to unpaid penalties. The interest rate is determined quarterly and is calculated as the federal short-term rate plus 3 percentage points.
Steps to Take Now
With the extension deadline behind you, the immediate priority is to file your overdue tax return and pay any amount you can as quickly as possible. You can still prepare and submit your return using several methods:
- Using IRS Free File if your adjusted gross income (AGI) is below the specified threshold.
- Using commercial tax software.
- Hiring a tax professional to assist you.
- Downloading forms from the IRS website and filing by mail.
The most direct method is IRS Direct Pay, which allows you to pay from a bank account for free on the IRS website. Other electronic options include paying via debit card, credit card, or digital wallet, though these services are processed by third-party vendors that may charge a fee. The Electronic Federal Tax Payment System (EFTPS) is another free federal service available for making payments.
If you cannot pay the full amount owed, you should still pay as much as you can when you file. The IRS offers several resolution options for taxpayers who cannot cover their entire tax bill at once. These include short-term payment plans and more formal installment agreements that allow you to make monthly payments for up to 72 months.
Potential Exceptions for Automatic Extensions
Certain taxpayers are granted an automatic extension to file their returns without having to submit Form 4868. U.S. citizens and resident aliens who are living and working outside of the United States and Puerto Rico typically receive an automatic two-month extension to file their return, moving their deadline to June. Members of the armed forces serving in a designated combat zone also receive an extension, which pushes the deadline for filing and paying taxes to at least 180 days after they leave the combat zone.
The IRS may also grant relief to taxpayers affected by a federally declared disaster. In these situations, the IRS can postpone tax filing and payment deadlines for individuals and businesses within the designated disaster area. Taxpayers in these locations do not need to request an extension, as the relief is often applied automatically. Information on specific disaster relief provisions is announced on the IRS website.