People Who Requested an Extension

If you requested an extension to file your recent federal tax return, it’s time to act! The IRS filing deadline is usually October 15.

What happens if you don’t file on time?

If you miss the deadline, your return will be considered late, and you could face penalties and interest that increase with each passing day. The IRS may apply the following penalties:

  • Failure to file penalty: A percentage of the amount you owe.
  • Failure to pay penalty: Interest charged daily on the outstanding balance.

In addition, if the problem persists, the IRS may take more serious measures to collect the debt, such as garnishing a portion of your wages or bank account.

Here are a ten important points to consider:

  1. The New Deadline: The extension is not indefinite. This year, the new deadline to file federal return is October 15, 2025. Mark this date on your calendar.
  2. The Extension Is for Filing, Not for Paying: This is a common misconception. The extension gives you more time to prepare and file your return; nevertheless, it doesn’t exempt you from paying the taxes you owe. You may still accrue interest and penalties on unpaid taxes.
  3. Penalties for Failure to File vs. Penalties for Failure to Pay: The failure-to-file penalty is a percentage of the unpaid tax and can be significantly higher than the failure-to-pay penalty, which is interest that accrues daily.
  4. Do Not Delay Collecting Proper Documentation: Although you have more time, it’s wise to start gathering your W-2s, 1099s, receipts, and other relevant documents as soon as possible. The organization will help you avoid errors and prepare an accurate return.
  5. Professional Review of Your Tax Return: Take the time to review your return carefully. If necessary, get in touch with a professional tax preparer. An extension gives you the opportunity to correct any errors before submitting the return to the IRS.
  6. If You Owe Taxes, Start Paying ASAP: If you know you owe tax, it’s best to pay what you can, even if you have requested an extension. Doing so will reduce the amount on which interest and penalties are calculated.
  7. Ask About Payment Plans: If you can’t pay your taxes in full, don’t ignore the situation. The IRS offers several payment plan options, such as installment agreements.
  8. State and Local Tax Returns: Remember that the IRS extension does not necessarily apply to state and local tax returns. Check your state’s specific deadlines to avoid additional penalties.
  9. Seek Professional Help: If the reason you requested an extension is because your taxes are complicated, or if you simply feel overwhelmed, now is the perfect time to seek help. You can count on the Hispano Tax Service team to provide tax support in your language.
  10. Proactivity Is the Best Strategy: The IRS always prefers taxpayers to be proactive. Filing your return and communicating if you have problems is the best way to minimize any penalties.

The first step is to file your return.

Filing your return as soon as possible is the first step to minimizing any penalties or interest. Don’t wait until the last minute. We are here to help!

Our certified professionals with over 15 years of experience are ready to guide you through this process. Don’t risk making costly mistakes. Contact us today for a consultation and ensure a stress-free tax filing.