Is there a penalty if you cannot file by the April 15 deadline and you fail to file an extension?
If you are unable to file your federal tax return by the April 15 deadline and do not file for an extension, you may be subject to penalties. The IRS imposes both a failure-to-file penalty and a failure-to-pay penalty if taxes are owed.
Failure-to-File Penalty
- The failure-to-file penalty is generally 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%.
- This penalty applies if you do not file your return by the due date, even if you are not required to pay any tax.
- If you file an extension, the penalty is suspended until the extended due date, as long as you file by that date.
Failure-to-Pay Penalty
- The failure-to-pay penalty is 0.5% of the unpaid tax for each month or part of a month that the tax remains unpaid, up to a maximum of 25%.
- This penalty applies if you owe taxes and do not pay by the original due date.
- Interest also accrues on unpaid taxes from the original due date until payment is made.
How to File an Extension
- You can file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to get an automatic 6-month extension.
- Using OLT (Online Taxes) software, you can file an extension by clicking on the tax tools button in the top-right corner and selecting "extension," then following on-screen instructions.
- Filing an extension does not extend the time to pay any taxes owed. You must still pay any estimated tax liability by April 15 to avoid penalties.
Source:
About Form 4868
Publication 505
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.