Buzz
If you requested an extension for your 2023 tax return and still haven't filed, time is running out: The ultimate deadline for 2023 tax returns is Tuesday, October 15. Failing to meet this deadline could lead to penalties.
The IRS permits individuals to seek a six-month extension beyond the usual April 15 tax deadline—however, this only provides additional time to organize your documents. Any taxes owed must still be paid by April, after which interest and late fees start accumulating. If you haven't filed or paid, it's crucial to act promptly to address both.
The failure-to-file penalty amounts to 5% of your unpaid taxes for each month or partial month your return is overdue, with a maximum of 25% of your total tax bill. The failure-to-pay penalty is 0.5% of your unpaid taxes for each month or partial month your payment is late, also capped at 25%. Additionally, interest will accrue until your balance is fully paid. (While both penalties can apply simultaneously, they partially offset each other: The failure-to-file penalty is reduced by the failure-to-pay penalty for that month, ensuring the maximum combined penalty is 5%, not 5.5%.)
The IRS provides both short- and long-term payment plans for those unable to pay their taxes by the April 15 deadline, offering an additional 180 days or up to 72 months, respectively. While interest will still accrue, the failure-to-pay penalty is halved as long as you stay current on your plan. You can arrange this online.
Filing extensions for natural disasters
While most taxpayers with extensions must file now, exceptions exist for those in disaster-affected areas, including Hurricane Helene. Residents and businesses in Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia with approved extensions now have until May 1, 2025, to file their 2023 tax returns. This deadline also automatically extends to 2024 returns.
Taxpayers in 25 states currently qualify for extensions beyond October 15—the IRS provides details on eligibility on its website.
It’s important to note that, like standard extensions, disaster-related extensions do not exempt you from paying your taxes on time. They only apply to filing your return.
