About one in eight taxpayers requests an extension to file their taxes – WSJ

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You don’t need a special reason to request more time to file your taxes. The IRS will automatically grant you a filing extension as long as you submit your request by the Tax Day deadline, April 15.

What You Need to Know:

  • An extension to file is not an extension to pay.
  • If you owe taxes and miss the April 15 deadline without filing for an extension, you could face:
    • A failure-to-file penalty
    • A failure-to-pay penalty
    • Daily interest on your unpaid tax and penalties (currently 7%, compounded daily)

How to Request an Extension:

You can request a six-month extension—giving you until October 15 to file—by taking one of the following actions:

  1. File IRS Form 4868
    • Ask your tax preparer to submit it
    • File using your tax software
    • Use IRS Free File
  2. Make a payment (Be sure to designate your payment as being for an extension.)
    • Use IRS Direct Pay with your bank account
    • Be sure to designate your payment as being for an extension; even paying just $1 triggers an automatic extension

Special Situations:

  • Waiting on EV Tax Credit Paperwork?
    Some taxpayers are delaying filing until they receive documents from car dealerships required to claim the clean vehicle tax credit.
  • Disaster Area Residents:
    • Even if you qualify for an extended deadline to file and pay (such as May 1, Oct. 15, or Nov. 3, depending on your location), the deadline to electronically file Form 4868 is still April 15.
    • If filing by paper due to the extended disaster timeline, make sure it’s postmarked by May 1.
    Current disaster-related extensions include:
    • All of Arkansas, Kentucky, and Tennessee, and parts of West Virginia: deadline extended to Nov. 3
    • Los Angeles County taxpayers: deadline extended to Oct. 15

Expecting a Refund?

If you are owed a refund, there is no penalty for filing late. However, you must file to receive it. The IRS allows up to three years to file and claim your refund—after that, the money is forfeited.

As a reminder, the IRS announced that more than 1.1 million taxpayers have until April 15, 2025, to claim over $1 billion in unclaimed refunds from tax year 2021.

https://www.wsj.com/personal-finance/taxes/tax-extension-irs-2024-taxes-f27220b8