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Int'l Business Times
2 days ago
- Business
- Int'l Business Times
Filing Taxes Late in the US (2025): Penalties and How to Get an Extension
Filing taxes can feel overwhelming, especially when you're worried you've missed the deadline. But the good news is, it's not too late to act. If you're still working through your 2025 tax return, take a deep breath: there's still a way forward. With the right information and the proper tools, tax filing becomes much more manageable. Whether through expert advice or accessible digital platforms, anyone can take control of their taxes. Key Tax Deadlines And How To File Late Understanding the important dates is crucial for a smooth tax season and avoiding extra charges. The IRS began accepting 2025 tax returns on 27 January, with the official deadline set for 15 April. If you've missed that window, it's vital to request an extension immediately by submitting Form 4868. You'll need to include your name, address, Social Security number or individual taxpayer identification number (ITIN), as well as an estimate of what you owe and how much you're paying. Even if you can't pay the full amount, you may still qualify for an extension. This form can be submitted via tax software, a professional preparer, or the IRS Free File service, extending your deadline to 15 October. Alternatively, you can also obtain an extension by making a payment through Direct Pay or the Electronic Federal Tax Payment System and selecting 'extension' as your payment reason. Note that this extension only covers your return, not the payment itself, which was due on 18 April. Missing the payment deadline may lead to interest and penalties. The failure-to-file penalty stands at 5% of unpaid taxes per month (up to 25%), while the failure-to-pay penalty is 0.5%, also up to 25%. While it's important to file on time, how you do it is up to you. Embracing Digital Tools To File Taxes There are several ways to file taxes, and the best one for you depends on your needs. Tax apps have grown in popularity for their ease, affordability and speed. TurboTax is a leader in the space, offering services from free basic filing to professional support packages that cost up to £286 ($389). For a more guided experience, it also provides assisted filing via live chat. H&R Block offers similar services with both free and paid options. These platforms are especially helpful for automatically identifying applicable deductions and credits, which can increase your refund. Prefer government-backed methods? Those are available too. Government-Supported Filing Options If your adjusted gross income is £53,752 ($73,000) or less, the IRS Free File programme offers Guided Tax Preparation. For higher earners, Free File Fillable Forms are available. For individuals earning £49,334 ($67,000) or less, the Volunteer Income Tax Assistance programme provides free help. Seniors aged 60 and above can also access Tax Counseling for the Elderly. For those leaning towards a more traditional method, you can still complete Form 1040 and post it to the IRS. While reliable, this method may take longer to process. What You Need To File Accurately Regardless of your filing method, preparation is essential. Start by collecting key documents: W-2s, 1099s for freelance or investment income, and any proof of deductions or credits. Then choose whether to file solo, with a professional, or through software. Accurately determining your filing status—single, married filing jointly, or head of household—is key, as it impacts your tax rate and eligibility for credits. Many opt for the standard deduction, which in 2025 was £22,090 ($30,000) for joint filers and £11,045 ($15,000) for single filers. It's vital to understand the benefits of credits like the Earned Income Tax Credit (EITC) and Child Tax Credit, which can significantly reduce your tax bill. Filing is essential even if you're unsure about your obligation—you could be eligible for a refund. How To Pay Your Taxes Efficiently The IRS offers several payment options including bank transfers, credit cards, and digital wallets. If you can't cover your full liability, request a payment plan. Be aware that interest will accrue until your balance is cleared. Apply for a plan online or by using Form 9465. To reduce interest, consider a credit card with 0% introductory interest. If you expect a refund, opt for direct deposit—electronic filings are usually processed within 21 days. Returns flagged for manual review may take longer, and if the IRS adjusts your return, they will contact you by mail. Although the official extension deadline has passed, delaying further is unwise. Whether you're filing alone, with professional help, or using digital tools, the key is preparation. Gather your documents, choose the right method, and understand your eligibility for deductions and credits. Being organised and precise will help you avoid stress and maximise your refund. Originally published on IBTimes UK
Miami Herald
23-05-2025
- Business
- Miami Herald
IRS Issues Tax Deadline Reminder To Millions
The Internal Revenue Service (IRS) has issued a reminder to millions of U.S. taxpayers living and working abroad to file their 2024 federal income tax returns and pay any taxes due by June 16. The extension applies to U.S. citizens and resident aliens outside the country, including dual citizens, offering them a two-month grace period after the regular April 15 deadline. All U.S. taxpayers, regardless of where they live, must report worldwide income to the IRS. That includes wages, interest, dividends and income from foreign sources. Accurate and timely filing is required to avoid interest, penalties, and the risk of missing out on available tax credits such as the foreign earned income exclusion. U.S. citizens or resident aliens whose residence and main place of business or post of duty is outside the U.S. and Puerto Rico, as well as members of the military on duty abroad, qualify for the automatic two-month extension-shifting their filing deadline from April 15 to June 16, 2025. Taxpayers unable to file by June 16 can request an additional extension to October 15, 2025. This extension is limited to filing-not to payment. Interest will accrue on any unpaid taxes starting from April 15, 2025. Electronic extension requests can be submitted through IRS systems, and Form 4868 is available for those unable to file online. Businesses should use Form 7004 for extensions, and can get a six-month extension. The fastest payment options include IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS). U.S. taxpayers without a domestic bank account can transfer payments directly to the IRS. Debit and credit cards, as well as digital wallets, are also accepted and may include service fees. Individuals affected by the ongoing conflict in Israel, or with residences or businesses in Israel, Gaza, or the West Bank, have their federal filing and payment deadline extended to September 30, 2025. Military personnel on duty in combat zones may also qualify for automatic extensions. Taxpayers with foreign financial accounts holding more than $10,000 at any point during 2024 must submit Form 114 (FBAR) electronically to the Treasury Department's Financial Crimes Enforcement Network. The initial deadline was April 15, 2025, with an automatic extension to October 15, 2025, for those who missed the first date. Jay A. Soled,professor and chair of the Department of Accounting and Information Systems at Rutgers Business School, New Jersey,previously told Newsweek: "Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of seven percent per year, compounded daily, after April 15, 2025." Commenting on why individuals working and living abroad have a two-month filing extension, Soled said it was "undoubtedly a relic of a bygone era when it was difficult for those living overseas to receive third-party information returns." He added that "in light of current technological developments, Congress would be wise to eliminate this exception." Richard D. Pomp, professor of law at the UConn Law School, Connecticut,previously told Newsweek, while discussing why individuals working and living abroad have a two-month filing extension: "The extension is a very old rule that predates the digital economy. Correspondence in those early days took place by mail and the time it took for mail to go back and forth across the ocean could lead to delays that taxpayers living in the country did not experience. In the digital economy, things are far more efficient and the rule is probably unduly generous." He added: "We are currently living through a total state of chaos at the IRS. Whenever possible, taxpayers abroad should file electronically and verify with screen shots and saved files, and copies of all documentation. U.S. taxpayers abroad have until June 16, 2025, to file their returns and pay taxes due for 2024, with eligible individuals able to seek additional extensions or payment arrangements if they are unable to meet this deadline. Taxpayers affected by the Israel-Hamas conflict or stationed in combat zones should review specific guidance and utilize all available IRS resources for support. Related Articles Trump Admin Gets a Win as Judge Allows IRS to Share Tax Data With ICEHunter Biden Drops Lawsuit Against IRS Employees: 'Afraid to Fight'IRS Issues Advice As Natural Disaster Season ApproachesIRS Issues Guidance For Those Facing May 15 Tax Deadline 2025 NEWSWEEK DIGITAL LLC.
Newsweek
23-05-2025
- Business
- Newsweek
IRS Issues Tax Deadline Reminder To Millions
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Internal Revenue Service (IRS) has issued a reminder to millions of U.S. taxpayers living and working abroad to file their 2024 federal income tax returns and pay any taxes due by June 16. The extension applies to U.S. citizens and resident aliens outside the country, including dual citizens, offering them a two-month grace period after the regular April 15 deadline. Why It Matters All U.S. taxpayers, regardless of where they live, must report worldwide income to the IRS. That includes wages, interest, dividends and income from foreign sources. Accurate and timely filing is required to avoid interest, penalties, and the risk of missing out on available tax credits such as the foreign earned income exclusion. File photo: the Internal Revenue Service Headquarters (IRS) building is seen in Washington. File photo: the Internal Revenue Service Headquarters (IRS) building is seen in Washington. J. David Ake/AP What To Know U.S. citizens or resident aliens whose residence and main place of business or post of duty is outside the U.S. and Puerto Rico, as well as members of the military on duty abroad, qualify for the automatic two-month extension—shifting their filing deadline from April 15 to June 16, 2025. Taxpayers unable to file by June 16 can request an additional extension to October 15, 2025. This extension is limited to filing—not to payment. Interest will accrue on any unpaid taxes starting from April 15, 2025. Electronic extension requests can be submitted through IRS systems, and Form 4868 is available for those unable to file online. Businesses should use Form 7004 for extensions, and can get a six-month extension. The fastest payment options include IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS). U.S. taxpayers without a domestic bank account can transfer payments directly to the IRS. Debit and credit cards, as well as digital wallets, are also accepted and may include service fees. Individuals affected by the ongoing conflict in Israel, or with residences or businesses in Israel, Gaza, or the West Bank, have their federal filing and payment deadline extended to September 30, 2025. Military personnel on duty in combat zones may also qualify for automatic extensions. Taxpayers with foreign financial accounts holding more than $10,000 at any point during 2024 must submit Form 114 (FBAR) electronically to the Treasury Department's Financial Crimes Enforcement Network. The initial deadline was April 15, 2025, with an automatic extension to October 15, 2025, for those who missed the first date. What People Are Saying Jay A. Soled, professor and chair of the Department of Accounting and Information Systems at Rutgers Business School, New Jersey, previously told Newsweek: "Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of seven percent per year, compounded daily, after April 15, 2025." Commenting on why individuals working and living abroad have a two-month filing extension, Soled said it was "undoubtedly a relic of a bygone era when it was difficult for those living overseas to receive third-party information returns." He added that "in light of current technological developments, Congress would be wise to eliminate this exception." Richard D. Pomp, professor of law at the UConn Law School, Connecticut, previously told Newsweek, while discussing why individuals working and living abroad have a two-month filing extension: "The extension is a very old rule that predates the digital economy. Correspondence in those early days took place by mail and the time it took for mail to go back and forth across the ocean could lead to delays that taxpayers living in the country did not experience. In the digital economy, things are far more efficient and the rule is probably unduly generous." He added: "We are currently living through a total state of chaos at the IRS. Whenever possible, taxpayers abroad should file electronically and verify with screen shots and saved files, and copies of all documentation. What Happens Next U.S. taxpayers abroad have until June 16, 2025, to file their returns and pay taxes due for 2024, with eligible individuals able to seek additional extensions or payment arrangements if they are unable to meet this deadline. Taxpayers affected by the Israel-Hamas conflict or stationed in combat zones should review specific guidance and utilize all available IRS resources for support.
The Hill
13-04-2025
- Business
- The Hill
Can I get an extension if I can't file taxes by April 15?
(NEXSTAR) – There are only a few days left to gather your documents, calm your nerves and hope for a good tax refund – but if you already know you're unlikely to make the deadline, here's how you can 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 the IRS' Form 4868, just make sure to do it before the April tax deadline to avoid late-filling 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 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. Where does your neighborhood rank among the 2025 'Best Places to Live'? 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 on a daily basis. 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 still 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.
