How to file an extension for tax returns?
To file an extension for tax returns, taxpayers must submit Form 4868 to the IRS by the regular due date of their return, April 18, 2023. Individual tax filers, regardless of income, can use IRS Free File to request an automatic tax-filing extension electronically. Filing this form allows taxpayers to file their tax return until October 16, 2023. Taxpayers must estimate their tax liability and pay any taxes owed by the regular due date of their return to avoid potential penalties and interest on the amount owed.
Taxpayers can also file for an extension through tax software, as most providers support filing Form 4868 for tax extensions. Additionally, taxpayers can file for an extension by mail by sending Form 4868 to the IRS.
It is important to note that an extension to file a tax return does not grant an extension to pay taxes owed. Taxpayers should estimate and pay any taxes owed by the regular due date of their return to help avoid possible penalties. Taxpayers who are eligible victims of recent natural disasters may have an automatic extension of time to make various tax payments.
What is the deadline for filing an extension?
The regular due date of your return, which is April 18, 2023, is the deadline for submitting an extension for tax returns.
If you're unable to file your federal tax return by this date, you can ask the IRS for an extension to file your return until October 16, 2023, by submitting Form 4868.
IRS Free File and tax preparation software both allow taxpayers to electronically submit Form 4868 requests for extensions. Remember that getting a return filing extension does not give you a tax payment extension. If you owe taxes, you should pay them before the deadline to avoid possible penalties and interest on the amount owed.
What happens if I miss the tax extension deadline?
You can be subject to fines and interest charges on unpaid taxes if you miss the deadline for filing a tax extension. It is advised to pay your estimated taxes due while requesting an extension to avoid being charged a late-filing penalty because an extension to submit your tax return does not provide you an extension to pay any required taxes.
For each month or portion of a month that the return is late, there is typically a 5% outstanding taxes penalty, up to 25% of the unpaid taxes. A failure-to-file penalty, which is usually 5% of the due taxes for each month or portion of a month that the return is late, up to a maximum of 25% of the outstanding taxes, may be assessed if you owe taxes and do not file your return or ask for an extension.
What happens if you don't file taxes at all?
You can be subject to penalties and interest charges for unpaid taxes if you don't file any taxes. Each month your return is late, there is a penalty of 5% of your outstanding tax liability, up to 25% of your total unpaid taxes. Any unpaid tax is also subject to daily compound interest from the return's due date until payment.
There is no penalty for failing to file if you are entitled to a refund, but you do forfeit the opportunity to get that refund. A penalty of 5% per month, up to 25% of the tax owed, may also be imposed for failure to file a tax return. Another potential outcome of failing to file your tax return is that your identity could be stolen if someone else uses your Social Security number to file a fraudulent tax return.
