What if I miss the tax deadline?
If you file an extension by the tax deadline each year, you won’t be penalized. For example, next year, if you file a federal extension by April 15, 2024, you will not be penalized.
What is the penalty for missing the tax deadline?
For federal taxes, the late-filing penalty is 5% of the unpaid taxes, with a minimum penalty of $330, or 100% of the unpaid taxes if less, when the return is filed late. The penalty increases 5% a month until the taxes are paid, or the penalty reaches 25% of the unpaid taxes. The penalty for filing late is higher than the penalty for paying late. Work with a Tax Pro to figure out your specific state penalties.
How to file a 2023 tax extension
For 2023 taxes, you can file IRS Form 4868 to apply for an extension. An extension will give you until October 15, 2024, to finish filing your tax return. It’s important to note that 2023 tax payments are still due to the IRS on April 15, 2024. Regardless of the extension on your forms, you still would need to pay your taxes, or set up a payment plan by April 15, 2024.