Filing taxes can be stressful, especially if you need more time to gather documents and ensure accuracy. Fortunately, tax extensions offer extra time to file your return without facing late-filing penalties. However, it’s crucial to understand tax extension deadlines to avoid unnecessary fines and interest charges.
What is a Tax Extension?
A tax extension allows taxpayers to postpone the deadline for filing their tax return, but it does not grant additional time to pay taxes owed. If you expect to owe taxes, you should estimate and pay your liability by the original due date to avoid interest and penalties. The extension only provides extra time to complete and submit the return.
Tax Extension Deadlines for 2025
Individual Taxpayers (Form 1040)
- Original due date: April 15, 2025
- Extension due date: October 15, 2025
Business Entities (Forms 1065, 1120, 1120-S)
- Partnerships & S Corporations:
- Original due date: March 17, 2025
- Extension due date: September 15, 2025
- C Corporations:
- Original due date: April 15, 2025
- Extension due date: October 15, 2025
Non-Profit Organizations (Form 990)
- Original due date: May 15, 2025
- Extension due date: November 15, 2025
Note: If a deadline falls on a weekend or federal holiday, it typically rolls to the next business day.
How to File for a Tax Extension
For Individuals:
- File Form 4868 electronically or by mail.
- Use IRS Free File or tax software for quick and easy submission.
- Ensure the form is submitted by April 15, 2025, to avoid penalties.
For Businesses:
- File Form 7004 for corporate and partnership tax extensions.
- The form must be submitted by the original due date of the return.
State Tax Extensions:
- State tax extension rules vary—some are automatic, while others require separate forms.
- Check with your state’s tax authority for specific filing requirements.
Penalties and Interest for Late Payment
While a tax extension grants additional time to file, it does not extend the deadline for paying taxes owed. If you fail to pay by the original due date, you may incur:
- Late payment interest (accrues daily until paid).
- Failure-to-pay penalty (0.5% per month on the unpaid balance, up to 25%).
To minimize costs, estimate your tax liability and make a payment by the original due date.
Benefits of Filing a Tax Extension
- More time to gather necessary documents and ensure accuracy.
- Reduced stress and lower chances of making costly mistakes.
- Opportunity to consult a tax professional for complex filings.
How Go Fractional Can Help
Go Fractional specializes in helping individuals and businesses navigate tax extensions seamlessly. Our team provides:
- Assistance with filing extensions and meeting deadlines.
- Guidance on estimating taxes owed to avoid penalties.
- Stress-free tax support tailored to your needs.
Conclusion
Understanding deadlines is key to avoiding penalties and unnecessary stress. By planning ahead and filing an extension when needed, you can ensure compliance while giving yourself extra time to complete your return accurately. Need help? Partner with Go Fractional for expert tax support today!
