You are not obligated to make a tax payment when you file for your tax extension. But keep in mind that if you have a tax balance due when you file, penalties, late fees, and/or interest charges may be assessed if you do not pay the amount owed by the original filing deadline. See the FAQs regarding tax payments and penalties for more details.
FileLater offers print-and-mail extensions for individuals in most states. Note that some states will automatically grant you a state extension if your federal extension is approved, but each state is different. State-specific filing instructions and tax forms are available where applicable.
The requirements for Federal and state tax payments are different, and state tax extension guidelines vary by state. Please visit our State Tax Extensions page to get more information on whether you should file a state income tax extension and make a payment.
The late payment penalty is usually 0.5% (per month) of the unpaid tax, up to a maximum of 25%. For example, if you have $2,000 of unpaid taxes, the IRS will likely charge you $10 per month as a late payment penalty. Read more about penalties and interest.
The IRS generally charges interest on any unpaid Federal taxes. The interest rate (determined on a quarterly basis) is the current Federal short-term rate plus 3%. If you do not pay your taxes by the original deadline (April 15), the interest on your balance will compound daily as long as the balance is outstanding. Read more about penalties and interest.
The good news is that as long as your federal tax extension is approved, you will avoid the costly late filing penalty. However, since you are unable to pay your tax liability, you will likely be charged interest on the amount you owe (see the above question). You will be able to calculate any interest owed when you file your final tax return.
Yes, the IRS will generally work with individuals and businesses who cannot afford to pay their tax liability by negotiating payment plans or installment agreements. To discuss payment plans, you should contact the IRS directly by submitting IRS Form 9465 (Installment Agreement Request) or calling 1-800-829-1040. You can also look into requesting an “Offer in Compromise” to pay down your debt (see IRS Form 656 Booklet).
FileLater allows you to securely pay any expected taxes using EFW (Electronic Funds Withdrawal) directly from your bank account as part of our e-File process. You can also mail a check directly to the IRS if you prefer. FileLater provides easy-to-understand instructions as part of the application process based on whichever payment method you choose.
Yes. The IRS offers several different mailing addresses for making a tax payment as part of your tax extension, depending on your residency and the type of tax you’re remitting. As part of the FileLater service, we allow you to pay your taxes electronically using our secure system — or if you prefer, we also provide simple instructions on paying by check (including mailing addresses).
Once you submit your tax extension, we will send your information to the IRS for approval. If you are not approved, we will notify you with the reason why the IRS rejected your extension application and we will help to resolve your issue. You’ll be able to resubmit your application as many times as necessary at no additional charge. However, we cannot administer tax returns once the application is processed.