(NewsNation) — There isn’t much time left to gather your documents, calm your nerves and hope for a good tax refund. But, if you know you’re unlikely to make the deadline, here’s how to get an extension.
The last day to file in 2025 for most people is Tuesday, April 15, but the Internal Revenue Service has a tax deadline extension for those who need a few extra months.
If you’re planning on pushing back your filing date, you can get an automatic six-month extension using Form 4868. However, it must be filed before the April deadline to avoid any penalties.
Your new deadline will be Oct. 15, 2025, but the IRS could make an exception and push it back even further for taxpayers living out of the country.
What to know about filing for an extension on your taxes
Filing for an extension can now easily be done online. You can use IRS Direct Pay; the Electronic Federal Tax Payment System; or pay with a credit, debit card or digital wallet, but there are some things to keep in mind before hitting snooze on your 2024 tax return.
One key consideration is that the extension is for the paperwork, not the payment. You’ll still need to estimate your tax liability and pay by April 18 using the same form. The IRS reminds taxpayers looking for an extension that they should pay on time, even if they can’t give the full amount, to reduce possible penalties.
What tax penalties could you face?
The penalty for filing after the due date (including any extensions) is generally 5% per month, or part of a month, that the return is late. The maximum penalty is 25%, and taxpayers who are more than 60 days tardy will face a minimum penalty of $510 or the tax balance due, whichever is smaller.
“You might not owe the penalty if you have a reasonable explanation for filing late,” the IRS advises. “Attach a statement to your return fully explaining your reason for filing late.”
There is also a penalty for late payments, which is usually .5% per late month, with a maximum of 25%. Interest on the late payments, currently 7% for the first half of 2025, is compounded daily.
Can you avoid a late payment penalty on your taxes?
While interest must be paid on outstanding taxes, you may be able to avoid the late payment penalty if you can show reasonable cause by meeting both of these requirements:
- At least 90% of the total tax on your 2024 return is paid on or
before the regular due date of your return through withholding,
estimated tax payments, or payments made with Form 4868. - The remaining balance is paid with your return.
The IRS says it will work with those people unable to make full payments, and most people can set up a payment plan.
Finally, you can request that the IRS delay the collection process if your financial hardship is so great that you can’t make payments. The IRS warns that penalties and interest will still be charged during the collection delay, so one’s debt will grow until it is fully paid. The agency also reserves the right to review one’s ability to pay and even to file a tax lien.
See the IRS website or consult with a tax expert for more information.