Tax Deadline Panic? How to Get an IRS Extension Until October 15 — But You Still Have to Pay

As the April 15 tax deadline approaches, US taxpayers who are not ready to file can request extra time to submit their return later in the year. The Internal Revenue Service allows individuals to extend their filing deadline to October 15 by submitting Form 4868 or using its Free File system.

The process is straightforward. Taxpayers must provide basic personal details and an estimate of the tax they owe or any refund expected. However, the agency is clear on one point. An extension to file is not an extension to pay.

Payment Still Due by April 15

Taxpayers must still pay any estimated tax owed by April 15, even if they apply for a filing extension. Carl Breedlove, principal tax research analyst at H&R Block, said the obligation to pay does not change. Taxpayers who miss the payment deadline may face penalties and interest on the unpaid amount, he said.

Why Taxpayers Request Extensions

Tax professionals say extensions are commonly used when key documents are not yet available. Yishai Kabaker, a partner at Gursey Schneider LLP, said missing third-party tax documents is a frequent reason for filing delays during tax season.

He said that partnership-related forms, including K-1 statements, often arrive late, making it difficult for taxpayers to complete accurate returns on time.

How to File an IRS Extension

Taxpayers have several options before the April 15 deadline. They can submit IRS Form 4868 directly online or by mail.

They can also use the IRS Free File system, which automatically processes extension requests for eligible users. In some cases, electronic tax payments made through IRS systems can also be treated as a filing extension if the correct option is selected during payment.

Penalties for Late Filing and Payment

The IRS applies separate penalties for failing to file and failing to pay. The failure-to-file penalty is generally 5 percent of unpaid taxes per month, up to a maximum of 25 percent.

If a return is more than 60 days late, a minimum penalty applies, which is the lesser of 525 dollars or the total tax owed. The failure-to-pay penalty is generally 0.5 percent of unpaid taxes per month until the balance is cleared. Interest is also charged on unpaid taxes and is calculated using the federal short-term rate plus 3 percent, compounded daily.

Payment Plans Available

Taxpayers who cannot pay in full may apply for an IRS payment plan. The agency allows eligible individuals to spread payments over time based on their financial situation. Approval is usually granted shortly after application submission.

State Tax Rules May Differ

State tax deadlines often align with federal deadlines, but rules vary across jurisdictions. Some states automatically accept a federal extension, while others require separate forms. Kabaker said taxpayers should check state rules individually, as requirements can differ depending on location.