Additional Coverage:
As Tax Day approaches this week, millions of Americans who filed for extensions are being reminded that while they have more time to submit their tax returns, any taxes owed must still be paid by April 15.
Each year, about 20 million taxpayers request extensions, giving them until October to finalize their paperwork. However, this extension does not delay the deadline for paying any taxes due. Missing the April 15 payment deadline can result in penalties and accumulating interest.
Mark Steber, chief tax officer at Jackson Hewitt Tax Services, explained that the extension simply allows extra time to file paperwork but does not extend the payment deadline. “Those taxes are due on April 15 by midnight,” he emphasized.
For those unable to pay their full tax bill by the deadline, the IRS provides several options, including short-term payment plans and longer-term installment agreements. Experts advise taxpayers to at least file their return and pay as much as possible by the deadline to minimize penalties.
The IRS can apply a failure-to-pay penalty along with interest that compounds daily, which can cause the amount owed to grow significantly over time. Steber pointed out that the penalty for failing to file is generally more severe than the penalty for failing to pay, so filing on time or requesting an extension is crucial.
“The worst thing you can do is ignore the deadline,” Steber warned. “Many people think they’ll deal with it later, but that can lead to multiple penalties and interest that quickly add up.”
Taxpayers are encouraged to act promptly to avoid unnecessary financial burdens as the April 15 deadline looms.