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If you’re among the millions of Americans who haven’t filed your 2024 tax return yet, don’t panic—but do act quickly. With the April 15 deadline looming, a simple step can save you from hefty IRS penalties: file for an extension.
More than one-third of the 163 million individual filers have yet to submit their returns, according to recent Internal Revenue Service data. Tax professionals emphasize that filing for an extension is not only acceptable—it’s often advisable.
What an Extension Does—and Doesn’t Do
Filing Form 4868 by April 15 gives taxpayers an automatic six-month extension to file—until October 15—no explanation necessary. However, this does not extend the time to pay taxes owed. Any outstanding tax liability must still be paid by April 15 to avoid late payment penalties.
Failing to file either a return or an extension triggers the IRS’s failure-to-file penalty, one of the agency’s steepest.
- Failure to file: 5% of unpaid taxes per month, up to 25%
- Failure to pay: 0.5% per month, also capped at 25%
- Interest: Accrued daily, currently at an annual rate of 7%
Even if you’re unsure of your total tax bill, paying at least 90% of your 2024 liability by April 15 will protect you from underpayment penalties under the IRS’s safe harbor rule.
Disaster Area Extensions: Know Your Deadline
Some taxpayers have automatically extended deadlines due to federally declared disasters. For example:
- Alabama, Florida, Georgia, North Carolina, South Carolina:
Automatic extension to May 1 to both file and pay. - Parts of Alaska, New Mexico, Tennessee, Virginia:
Also eligible for May 1 extensions.
To file beyond that date, Form 4868 must be submitted—electronically by April 15, or by mail postmarked by May 1 for disaster-affected areas.
In other cases, taxpayers have even longer extensions:
- Los Angeles County, California: File and pay by October 15
- Kentucky and 12 counties in West Virginia: Deadline extended to November 3
Avoid Paper—File Online
While extensions and relief measures help, experts agree on one universal tip: avoid paper forms.
Due to IRS staffing shortages—exacerbated by layoffs tied to the Department of Government Efficiency (DOGE), a new agency formed under President Donald Trump—processing delays for paper forms have worsened. Although a court recently ordered the rehiring of 7,000 IRS agents, cuts continue.
Mike Celka, an accountant in Alabama, puts it bluntly: “Our clients want it done and over with by April 15—and I’ve been working 80 hours a week so, so do I.”
The takeaway? If you’re not ready to file by Monday, file an extension online and pay what you can. It’s the easiest way to stay in the IRS’s good graces—and out of penalty territory.
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