As Tax Day Approaches, Here’s What You Should Understand Regarding Filing Extensions
With the tax filing deadline fast approaching, numerous Americans are rushing to complete their returns—and hopefully keeping an eye out for possible tax scams along the way. For those who require additional time or support to file securely and accurately, the IRS provides options to assist.
What If You Can’t Submit by April 15?
This year’s Tax Day is on Tuesday, April 15. If you’re not prepared to file by that date—whether it’s due to delaying, a complicated financial year, or an unforeseen incident like a natural disaster—you might qualify for a tax extension.
How Do Tax Extensions Function?
The IRS permits taxpayers to file for an extension, granting them more time to submit their federal tax returns. This extension usually allows for an additional six months, shifting your deadline to October 15, 2025. Notably, applying for an extension will not adversely affect your standing with the IRS. In fact, it’s a preferable choice compared to filing late.
However, it is crucial to understand that while an extension provides more time to file, it does not extend the time to pay any taxes owed. Interest and penalties may still apply if payment is not made by April 15.
Automatic Extensions for Specific Situations
Certain taxpayers automatically qualify for extensions because of specific circumstances. These include:
– Individuals deployed in combat zones or hazardous duty locations
– U.S. citizens residing overseas
– Residents of federally declared disaster areas
At present, the IRS has granted automatic extensions to:
– All residents of Tennessee (new deadline: Nov. 3)
– Residents of Alabama, Florida, Georgia, North Carolina, and South Carolina (new deadline: May 1)
– Designated counties in Alaska, California, New Mexico, South Carolina, and Virginia
How to Apply for a Tax Extension
To apply for an extension, you need to complete IRS Form 4868, officially known as the “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.”
You can submit this form in several ways:
– Using tax software, which includes free federal filing choices
– Sending a printed copy to the IRS by mail
– When making an estimated tax payment—simply indicate that the payment is for an extension
If you anticipate owing taxes, the IRS suggests making an estimated payment when you file for an extension to prevent extra penalties.
Deadline to Apply for an Extension
Your extension application must be submitted by April 15, the original tax deadline.
Will I Owe More If I Apply for an Extension?
Filing for an extension does not postpone your tax payment. If you owe taxes and do not pay by April 15, interest and penalties will begin to accumulate:
– Interest: 5% per month on the unpaid balance, up to 25%
– Late payment penalty: 0.5% per month, also up to 25%
If you’re unable to pay your entire tax bill, you can apply for a short- or long-term payment plan with the IRS. These plans may help lower the penalties you owe.
If you expect a refund and are not making a payment, filing under an extension will not impact your refund amount.
What Occurs After You Receive an Extension?
Once your extension is granted, all that remains is to file your return by the new deadline—October 15, 2025. Use the additional time to gather your documents, review your return thoroughly, and file confidently.
For more details on tax safety and deadlines, refer to our guide on preventing tax scams and updates regarding the upcoming REAL ID deadline.