Tax Extension Deadlines and Due Dates

• admin
• January 28, 2025
• 6 min read

Tax Extension Deadlines and Due Dates

If you are unable to prepare and file your federal income tax forms by the April 15th due date for the previous tax year, avoid paying a penalty by filing for a tax extension.  Internal Revenue Service form 4868, “Application for Automatic Extension of Time to File U. S. Individual Income Tax Return” can be obtained, completed and filed by the April 15th deadline.   This allows you a tax extension until October 15th of the same year in order to complete and file a return.  If you are living overseas, you may qualify for a 2-month automatic extension until June 15th of the same year.

It is important to note that you will be charged interest on any unpaid tax. The interest rate is the current Federal short-term rate plus 3%, and it compounds daily. If you file a return or tax extension but don’t pay all your taxes on time, the late payment penalty is 0.5% per month (up to a maximum of 25%) on the unpaid tax.

Estimating your taxes on the Tax Extension Form can be relatively easy. For example, if you are self-employed and there has been no significant change to your income over the last year and your family status (including dependents) remains the same, you can assume the same amount of income taxes as the previous year. For hourly and salaried employees, provided there are no significant changes in your dependents and income, estimate your taxes based on the previous year and review your W-2 Tax Form(s) to determine what has already been paid. Use these figures when completing your Tax Extension Form.

There are two types of penalties assessed if you do not file properly for a tax extension:

2) The first is the Failure to File Penalty ― assessed at 5% per month, up to 5 months, on the amount of income tax due

2) The second is the Failure to Pay Penalty ― assessed at 0.5% per month, on the unpaid balance of the income tax you owe.

Whether or not you are able to pay by the due date, whether you file a tax extension of not, it is still important that you file your income tax return as soon as possible.  It is a clear indicator to the Internal Revenue Service that you acknowledge that you owe the income taxes and are working towards paying what is due.

Second and Additional Tax Extensions

Up until tax year 2005, a taxpayer could file Tax Form 4868 and obtain a four-month automatic tax extension.  An additional two month tax extension could be obtained by completing Tax Form 2688.  However, effective with tax year 2005, the Internal Revenue Service modified Tax Form 4868, allowing the automatic six-month extension from the April 15th deadline.  With a tax extension, income tax returns are due on or before October 15th.  There are no second tax extensions with the exception of the following instances:

1. Members of the Armed Forces serving in a combat zone or contingency operation are eligible for additional tax extensions of time up to six months.  The tax extension begins once the deployment ends.  Refer to Internal Revenue Service Publication 3 for details relative to information about this tax extension request.

2. Taxpayers who are U.S. Citizens or residents who live outside the United States and Puerto Rico may qualify for a second tax extension.  The taxpayer falling into this classification must send a letter by the tax extension due date, October 15th, to obtain up to a two-month additional tax extension for filing their federal income tax return.