What Day Are Taxes Due in October?
The October tax deadline is the final step for individuals who filed an extension. Clarify the filing date and the key distinction between filing and paying.
While most taxpayers associate tax obligations with the spring, a deadline surfaces in the fall for those who have received an extension from the Internal Revenue Service (IRS). This October date is the final opportunity for this group to submit their tax documents without penalty.
The October Tax Extension Deadline
The tax deadline in the fall is October 15. This date is the final day for individuals to file their federal income tax return if they were granted an automatic six-month extension. If October 15 lands on a weekend or a public holiday, the deadline shifts to the next business day.
This extension was obtained by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, on or before the original April tax deadline. It is an extension of the time to file, not an extension of the time to pay. The estimated tax liability was still due in April, and any amount not paid at that time began to accrue interest.
Consequences of Missing the Deadline
Failing to file a return by the October 15 deadline can lead to financial penalties. The IRS assesses a Failure to File Penalty for returns submitted after the due date. This penalty is 5% of the unpaid taxes for each month or part of a month a return is late, up to a maximum of 25% of the unpaid taxes.
A separate Failure to Pay Penalty may also apply, which is 0.5% of the unpaid taxes for each month the taxes remain unpaid. For individuals who did not pay their full estimated tax in April, this penalty has likely been accumulating. The IRS also charges interest on underpayments, and this interest is applied to the outstanding penalties as well.
How to File and Pay
Electronic filing is the method the IRS recommends. Taxpayers can use IRS Free File if their Adjusted Gross Income (AGI) is below a certain threshold, or they can use commercial tax software. These platforms guide individuals through the filing process. Filing by mail is also an option, but filers must use the correct mailing address found on the IRS website, which varies by location and whether a payment is included.
For those who owe taxes, payment can be made through several channels:
- IRS Direct Pay allows for direct bank account withdrawals at no cost.
- The Electronic Federal Tax Payment System (EFTPS) is a free government service.
- Debit or credit card payments will involve processing fees from a third-party processor.
- A check or money order can be mailed with a paper return.