Did you know that, according to The Tax Adviser, in Fiscal Year 2022, the IRS collected over $98.4 billion in unpaid taxes and assessed $73.6 billion in civil penalties? That’s a lot of money lost to penalties that could have been avoided. If you’re wondering how long you can delay filing your taxes without getting hit with penalties, you’re not alone.
The answer isn’t as simple as you might think. It depends on whether you file for an extension, if you owe taxes, and how long you wait. In this article, explore tax deadlines, extension rules, and potential penalties, so you can avoid costly mistakes in 2025.
What is the 2025 Tax Filing Deadline?
When is the IRS filing deadline?
For tax year 2024, the federal tax filing deadline is April 15, 2025. This applies to individual income tax returns, business returns, and self-employed taxpayers. If you need more time to file your tax return, you can request an automatic extension to October 15, 2025, but you still have to pay your tax bill by the April due date to avoid penalties.
If you're filing a business return for an S corporation or partnership, your filing deadline is March 15, 2025.
What happens if April 15 falls on a weekend or holiday?
If April 15 falls on a Saturday, Sunday, or federal holiday, the extended due date shifts to the next business day.
For 2025, April 15 falls on a Tuesday, so the deadline remains unchanged. However, if you’re outside of the United States (such as in Puerto Rico or a foreign country), you may qualify for an automatic two-month extension until June 15, 2025—but you still have to pay any taxes owed by April 15 to avoid interest and penalties.
Can You Get an Extension to File Your Tax Return?
How to file an extension
If you need more time to file your tax return, you can request an extension to push your filing deadline to October 15, 2025. However, this only extends your time to file, NOT your time to pay your taxes. You still must pay your tax bill by April 15 to avoid penalties.
Here’s how to request an automatic extension for your federal tax return:
1. Pay Online and Check the Extension Box
- Use IRS Direct Pay, debit or credit card, or Electronic Federal Tax Payment System (EFTPS) to pay any taxes due.
- Select “extension filing” when making a payment.
- This serves as your automatic extension request, and you’ll get a confirmation for your records.
2. Use IRS Free File (No Income Limit for Extensions)
- The IRS offers free filing software that allows you to e-file your federal tax extension for free.
- You can print or e-file Form 4868 directly.
3. File Form 4868 by Mail
- Complete Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).
- Estimate your original tax due for the 2024 tax return and how much you’ve already paid.
- Attach the form to your tax payments and mail it to the IRS.
Does a tax extension mean you don’t have to pay?
No! Filing an extension only gives you more time to file your return, NOT more time to pay your taxes.
- If you owe taxes, you must pay any taxes due by April 15, 2025, even if you file an extension.
- If you don’t pay at least 90% of your federal tax by April 15, you’ll face interest and penalties even if you file a tax extension.
- If you're expecting a refund, there’s no penalty for filing late, but you should finish and file your return as soon as possible to claim your money.
Further Reading: Discover how to avoid financial penalties with the IRS
What Happens if You File Taxes Late?
IRS penalties for filing late
If you fail to file your tax return by April 15, 2025, and you didn’t request an extension, the IRS charges:
- 5% of your unpaid tax per month, up to a maximum of 25%.
- If you’re more than 60 days late, the minimum penalty is $485 or 100% of the tax due (whichever is less).
Example: If you owe $3,000 and file 4 months late:
$3,000 × 5% × 4 months = $600 in penalties
IRS penalties for paying late
If you file on time but don’t pay your tax bill, the IRS charges a failure-to-pay penalty of:
- 0.5% of unpaid tax per month, up to 25% of your total balance.
Example: If you owe $3,000 and pay 4 months late:
$3,000 × 0.5% × 4 months = $60 in penalties
How much interest does the IRS charge?
In addition to penalties, the IRS also charges interest on unpaid taxes:
- The 2024 tax interest rate was 8% annually, plus a ¼ of 1% penalty per month.
- Interest compounds daily, so the longer you delay your tax payments, the more you’ll owe.
Further Reading: Learn expert tips for minimizing IRS tax penalties
What Are Your Options If You Can’t Pay Your Taxes?
IRS payment plans and installment agreements
If you can’t pay your tax bill in full, you have options to avoid serious penalties and collections.
1. Short-term payment plan (120 days or less)
- Available if you can pay your tax due within 120 days.
- No setup fee, but interest and penalties still apply.
- You can request this plan online through the IRS website.
2. Long-term installment agreement
- If you need more time to pay your taxes, you can apply for a monthly installment agreement.
- Fees:
- $31 for online setup (automatic payments).
- $107 for mail/phone setup (non-automatic payments).
- The IRS will automatically approve requests if you:
- Owe less than $10,000.
- Can pay your taxes in full within 3 years.
Offer in compromise: Can you settle for less?
If you can’t afford to pay your full tax bill, the IRS may let you settle for a lower amount through an Offer in Compromise (OIC).
To qualify, you must prove:
- You don’t have the income or assets to pay the full balance.
- Paying in full would cause severe financial hardship.
- The IRS might not be able to collect the full amount from you.
Example: If you owe $15,000 but can only afford $5,000, the IRS may accept a reduced payment.
How to apply for an Offer in Compromise:
- Complete Form 656 (Offer in Compromise).
- Submit Form 433-A (Collection Information Statement) to show your financial situation.
- The IRS charges an OIC application fee, and most applications get rejected, so it’s best to work with a tax expert to improve your chances.
If the IRS denies your request, you may still qualify for a payment plan to spread your tax bill over several months or years.
Further Reading: Understand the consequences of not underpaying taxes
Key Takeaways
- The IRS allows a filing extension until October 15, 2025, but you still need to file and pay on time to avoid penalties.
- You can request an extension of time to pay, but interest and penalties will still apply on any unpaid balance.
- Taxpayers who need more months to file can e-file Form 4868 electronically for an automatic six-month extension.
- If you can't pay in full, you may be eligible for an installment agreement to spread your taxes in installments over time.
- This guide helps you refer to key IRS rules, state tax considerations, and verification steps to file your 2024 tax year return correctly.
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