Feeling the pressure of tax season looming ahead? You might have more time to file your tax return, discover who qualifies, and what penalties you should expect.
Tax Extension Qualification
Military members in combat zones can extend federal tax filing and payment deadlines by 180 days after their service ends beyond April 15, with additional extensions for those still on active duty.
The Internal Revenue Service has also granted tax return extensions for states affected by natural disasters in 2023 to give residents additional time for tax filing.
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California
San Diego County residents hit by storms and floods on January 21 will have until June 17 to file their federal tax returns.
Connecticut
People impacted by severe storms and flooding starting January 10 will have until June 17 to complete their federal tax returns, applicable to New London County, the Mohegan Tribal Nation, and the Mashantucket Pequot Tribal Nation residents.
Maine
People impacted by severe storms and flooding starting December 17, 2023, will have until June 17, to submit their federal tax returns, which applies to Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington residents.
Michigan
People impacted by storms, tornadoes, and flooding starting on August 24, 2023, will have until June 17 to complete their federal tax returns, which applies to Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland, and Wayne residents.
Rhode Island
People in Providence County impacted by severe storms, flooding, and tornadoes starting on September 10, 2023, are eligible for an extended federal tax return deadline of June 17.
Tennessee
Residents in Cheatham, Davidson, Dickson, Gibson, Montgomery, Robertson, Stewart, Sumner, and Weakley countiesPeople affected by severe storms and tornadoes starting on December 9, 2023, will have until June 17.
Washington
People in Spokane County impacted by wildfires starting on August 18, 2023, will have until June 17 to complete their federal tax returns.
West Virginia
People impacted by severe storms, flooding, landslides, and mudslides starting on August 28, 2023, will have until June 17, to submit their federal tax returns, applicable to residents in Boone, Calhoun, Clay, Harrison, and Kanawha counties.
American and Resident Aliens Extension
American citizens and resident aliens residing and working abroad, including Puerto Rico, receive an automatic two-month extension for filing their taxes until June 17. However, tax payments are still required by April 15, with corresponding interest and penalties for failure to pay on time.
Voluntary Tax Filing Extension Application
You can utilize IRS Free File or other software to complete and submit Form 4868 if you require additional time to organize your taxes. This form enables you to request an automatic tax-filing extension until October 15, 2024. Alternatively, you can make an electronic tax payment and designate "extension" as the reason.
You must contact each state directly to seek an extension beyond April 15, 2024. While a Form 4868 extension grants additional time for filing your tax return, it does not extend the deadline for paying any taxes owed.
IRS Tax Penalties
If you owe taxes after the deadline, the IRS will apply daily compounded 3% interest, plus the federal short-term interest rate, determined by the government every three months.
Here are other tax penalties to take into account:
The Failure-to-File Penalty
The failure-to-file penalty applies when you fail to submit your tax return by the due date, including any extensions, where the IRS imposes a penalty of 5% of the unpaid taxes for each month or fraction of a month that the return is overdue, capped at 25% of your outstanding taxes.
The Failure-to-Pay Penalty
The failure-to-pay penalty is enforced if you fail to settle the taxes owed by the tax payment deadline, where the IRS imposes a penalty of 0.5% on unpaid taxes for each month or portion thereof that they go unpaid, up to a maximum of 25% of your outstanding taxes.
The 0.5% failure-to-pay penalty will mitigate the 5% failure-to-file penalty if both penalties are accrued in a given month.
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