Latest news with #taxdeadline
CBS News
3 days ago
- Business
- CBS News
Does a tax extension delay your payment?
Every spring, taxpayers across the country rush to pull together the forms, receipts and financial records required to file their taxes before the April 15th deadline. No matter how prepared you think you are, though, all it takes is a missing form or two, a complicated financial situation, or an emergency to get in the way of filing on time. When that happens, requesting a tax extension can be a quick but temporary fix. By filing a simple form with the Internal Revenue Service (IRS), you can buy yourself extra time to prepare your tax return without incurring steep late filing penalties. Millions of taxpayers request extensions annually, according to the IRS, with the number climbing as people's financial lives become more complex. So, if you're unable to get your paperwork done in time, an extension seems like an obvious solution. But many filers think an extension also delays their payment due date, and misunderstanding how this or other IRS rules work can lead to extra charges and penalties. So, does a tax extension give you more time to pay, or does the IRS still expect your money by the original deadline? Find out how to get help with your delinquent tax debt today. The short answer is no, a tax extension doesn't delay your payment to the IRS. A tax extension gives you additional time to file your return — usually six months, moving the due date from mid-April to mid-October — but the IRS still requires taxpayers to estimate and pay their tax liability by the standard deadline. The best approach is to think of a tax extension as a way to avoid the late filing penalty, which can be as high as 5% of your unpaid taxes per month. If you fail to pay your total tax bill by the April 15th deadline, the IRS will typically charge: To minimize these types of penalties, you need to submit an estimated payment along with the IRS extension request form. If you're unsure of your exact tax liability, use your most recent pay stubs, investment statements and last year's return as a starting point. Even a rough estimate is better than paying nothing, and if you end up overpaying, you'll get a refund after you file. If you underpay, the IRS will charge interest on the difference, calculated from the April deadline until you settle the balance. Explore your IRS tax debt relief options online now. If you've filed an extension but can't pay the full amount you owe to the IRS, don't panic. There are numerous solutions to the issue, including: A tax extension gives you extra time to get your paperwork in order, but it doesn't delay the IRS's payment deadline. To avoid costly penalties and interest, pay as much as you can by the regular due date — even if you can't pay in full. And if your tax bill feels overwhelming, it may benefit you to explore your IRS payment options or consider working with a tax relief specialist to create a plan. The sooner you act, though, the more control you'll have over the situation.
Yahoo
26-05-2025
- Business
- Yahoo
US taxpayers abroad face June 16 filing deadline: IRS
The Internal Revenue Service (IRS) has extended the deadline for US taxpayers residing abroad, including military personnel on duty outside the US, to file their 2024 federal income tax returns. The new deadline, set for June 16, considers the standard two-month extension from the usual April 15 deadline, adjusted due to June 15 being a Sunday in 2025. Eligibility for the automatic extension to file applies to those whose primary residence or business is outside the US and Puerto Rico, as well as those in military or naval service stationed abroad. Taxpayers must attach a statement to their return to indicate their eligibility. Those unable to meet the June 16 deadline can request an additional extension to October 15, 2025, using electronic options provided by the IRS or by mailing Form 4868. However, IRS said an extension to file does not equate to an extension to pay adding that interest will accrue on any tax payments for 2024 received after 15 April. Payments can be made electronically through various IRS platforms, including IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS). For taxpayers without a US bank account, direct transfers to the IRS are possible, it added. Alternative payment methods such as debit cards, credit cards, and digital wallets are also available, although service providers may charge fees. Military members stationed abroad or in combat zones during tax season may qualify for additional extensions. Taxpayers in areas affected by attacks, such as Israel, Gaza, and the West Bank, have a filing and payment deadline of September 30, 2025. IRS sought individuals with foreign financial accounts exceeding an aggregate value of $10,000 in 2024 are required to file Form 114, Report of Foreign Bank and Financial Accounts (FBAR), with the Financial Crimes Enforcement Network (FinCEN). Last week, IRS' probationary employees, who were previously laid off by the US government and then reinstated, were reportedly asked to return to the office by 23 May. "US taxpayers abroad face June 16 filing deadline: IRS" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
