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Each year, roughly 20 million Americans file for tax extensions, but many may not realize that any taxes owed are still due to the IRS by April 15.
While an extension gives taxpayers until October to file, it does not delay their obligation to pay what they owe — and missing the deadline this week can trigger penalties and interest.
“The federal tax extension and most state extensions that piggyback on that simply give you six months to finalize your paperwork,” Mark Steber, chief tax officer at Jackson Hewitt Tax Services, told Fox News Digital.
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Tax season is here, don’t wait until the last minute. (iStock)
“It in no way extends the amount of time that you have to pay the tax that you owe. Those are due on April 15 by midnight,” he said.
The IRS offers several ways for taxpayers to pay what they owe or set up payment plans, including short-term options and longer-term installment agreements. Missing the deadline altogether, however, can increase penalties and interest.
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Fake “refund issue” messages trick taxpayers into entering Social Security numbers and bank details on fraudulent sites. (Michael Bocchieri/Getty Images)
Experts say taxpayers who can’t pay their full bill should still file and pay as much as they can by the deadline to limit added costs.
The agency can impose multiple penalties, including a failure-to-pay penalty and interest that compounds daily, which can cause balances to grow over time.
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Identity theft and fraudulent tax filings remain top concerns for the Internal Revenue Service as criminals exploit confusion around credits and filing rules. (Andrew Harrer/Bloomberg)
Even taxpayers who can’t pay in full are generally better off filing on time or requesting an extension, as the penalty for failing to file is typically higher than the penalty for failing to pay.
“The worst thing you can do is ignore the deadline,” Steber said. “Many people think they’ll deal with it later, but that can lead to multiple penalties and interest that quickly add up.”