What you need to know about the October 16 Tax Filing Extension Deadline
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The Internal Revenue Service (IRS) issued a reminder to taxpayers regarding the imminent tax filing extension deadline. Those who have sought an extension to submit their 2022 tax returns are advised to file their Form 1040 by Monday, October 16, to avoid potential late filing penalties.
Taxpayers situated in the majority of California, as well as specific regions of Alabama and Georgia, designated as disaster areas, are also allotted until October 16, 2023, to submit various federal individual and business tax returns and execute tax payments.
Additional filing time is available for those with an IRS record address in locations acknowledged by Federal Emergency Management Agency disaster declarations and for those returning from combat zones, including:
- Taxpayers impacted by flooding incidents in Illinois and Alaska, who have a filing extension until October 31, 2023.
- Individuals affected by flooding in Vermont, extended until November 15, 2023, to file.
- Taxpayers recently impacted by natural disasters, such as the Maui fires and Hurricane Idalia, affecting parts of Florida, South Carolina, and Georgia. Residents in Maui County, Hawaii, and numerous counties in Florida, South Carolina, and Georgia have until February 24, 2024, to submit various individual and business tax returns.
- Military members and others deployed in a combat zone typically have 180 days following their departure from the combat zone to file returns and settle any outstanding taxes.
What happens if I miss the October 16 Deadline?
If you’ve utilized an extension but fail to meet the October deadline, here’s a breakdown of the potential repercussions:
- Late Filing Penalty: The IRS may levy a penalty for late filing, which is typically 5% of the outstanding amount for each month or fraction thereof that your tax return is overdue, capping at 25% of the total amount due.
- Increased Fee: If your return is over 60 days late, the minimum penalty increases to either $450 or the amount of taxes owed, depending on which is lower.
- Late Payment Penalty: The IRS generally charges a late-payment penalty of 0.5% per month on any unpaid tax not settled by the filing deadline. This penalty can accumulate up to 25% of your unpaid taxes and will continue to grow until the amount is fully paid.
- Interest: Interest begins to accumulate on your overdue tax bill right after the initial tax filing deadline in April. Therefore, if payment is still pending by October, the accumulated fees can be substantial.