Are you penalized for filing tax extension?

Normally, taxpayers should file their tax return, or request an extension, and pay any taxes they owe by the deadline to avoid penalties and interest. An extension to file is not an extension to pay. Penalties and interest will apply to taxes owed after May 17.

What happens if you file taxes late if you don’t owe?

Individuals who owe federal taxes will incur interest and penalties if they don’t file and pay on time. The penalty for not filing your taxes on time is 5% of your unpaid taxes for each month that the return is late, maxing out at 25%. For every month you fail to pay, the IRS will charge you 0.5%, up to 25%.

What happens when you file an extension for income tax?

If you know you’re going to be out of the country on tax day, there is an automatic two-month extension that allows you to hold off filing and paying taxes without penalty, but you’ll still be assessed interest as of the day after the tax filing deadline.

When is the deadline for a tax extension for 2018?

This year, the 2018 tax extension deadline is April 17 (the same day regular taxes are due). So, to all the procrastinators out there, here’s everything you need to know about requesting an…

Is there a penalty for filing an extension?

Keep in mind, you may not be subject to a late payment penalty if you filed a tax extension on time (by the original deadline of your return) and paid at least 90% of your tax liability with your extension. At FileLater.com, you can file your tax extension online and electronically pay your tax due using our IRS-approved e-file system.

What happens if you file an extension and miss the deadline?

If you file an extension but miss the extended deadline, you will be subject to this penalty. Keep in mind that filing an extension when you owe taxes only gives you more time to file, not more time to pay—your payment is still due at the tax filing deadline (July 15 for 2019 tax returns filed in 2020).