Don’t Forget the Tax Extension Deadline on October 17!
You might have more time to submit your taxes, but you wouldn’t have more time to pay them! Keep an eye on October 17 on the calendar to prevent further fines and penalties. However, the IRS received over 19 million requests for tax extensions this year.
If you were one of the people who submitted one, make sure to mark October 17 as the deadline. You have until then to file your tax return if you get a tax extension. It’s not a postponement of the tax payment deadline; that was still in April.
Here are some more details regarding the tax extension deadline from Your Part Time Accountant.
Do I Fall Under the Tax Extension Deadline?
You have until October 17, 2022, to file your tax return if you submitted IRS Form 4868 on time or before the due date. You must pay at least 90% of your tax debt by the regular filing deadline, even if you have an extension. If you don’t, the IRS may impose interest and penalties on you.
The IRS will likely consider your taxes to be extremely late if you failed to submit IRS Form 4868 by the April 18 due and your tax return as well. Your unpaid tax bill may be subject to interest, failure-to-file, and failure-to-pay penalties from the IRS.
Some people will receive a longer filing deadline. People affected by a qualifying calamity or members of the armed forces are frequently included.
What Happens if I Don’t File My Tax Extension by October 15th?
You will owe additional interest if you requested an extension but still missed the deadline. You are not given additional time to pay taxes; rather, you are given more time to file your return.
If you didn’t pay 90% of your tax bill by the April deadline, you can be responsible for a larger late-payment penalty. The IRS imposes a late payment penalty that is typically equal to 0.5% of the unpaid tax per month after the due date for filing. 25% is the maximum fine.
There could be a penalty for filing late. For each month or portion of a month that your tax return is late, the IRS has the right to slap you with a late filing penalty equal to 5% of the amount owed. 25% of the amount owed is the maximum fine.
How Do I Request a Tax Return for the Upcoming Year?
Make sure to submit IRS Form 4868 on or before the due date for your taxes in 2023. Especially if you already know that you’ll need more time to complete your taxes.
Once more, requesting an extension merely extends the deadline for filing your tax return. It does not extend the period you have to pay the taxes you owe. You can estimate how much you owe and include some or all of that with your request for an extension. If the predicted payment is less than what is owed, interest will probably have to be paid on the shortfall. The more interest you may accrue, the longer the balance is outstanding.
Just because you can’t afford the bill doesn’t mean you shouldn’t file. If you are having trouble paying your taxes, the IRS provides payment arrangements. Contact a professional and don’t think about this twice!