In case you still have to hurry to prepare your tax return, you’re not the only one and the situation can be favorable. By April 14, 2025 date the IRS advised the taxpayers that they can request an extension or set up a payment plan if they are unable to pay the full amount.
As the last day to file federal taxes is on Tuesday, April 15, many Americans are still confused about what to do in case they are not prepared. Yet, an inaction-late filing can be very costly. The failure-to-file penalty is 10 times higher than that of the failure-to-pay penalty, as told by IRS guidelines.
If you need to extend the deadline to file or have difficulty paying the full amount of your tax bill at the moment, follow these steps below.
How to File for a Tax Extension in 2025
You can file for an extension without incurring any cost and it is much easier than you might think. By submitting Form 4868, you will get an automatic six-month extension, a service which the IRS provides to anyone for free. Thus, your new filing deadline is the 15th of October 2025.
You can file for an extension in three ways, primarily:
- Online using tax software like TurboTax or H&R Block
- Through the Free File program of the IRS, which even those whose income levels are below the threshold can access
- By mail, using the printed version of Form 4868
If you choose the mail method, the more secure you can use certified mail or some other way of tracking it. The post office will only accept it if the postmark is no later than April 15.
One other way to request an extension is to go online and make a payment. In the process, pick “Form 4868” and complete a request for the extension — even without filing the form.
The Necessary Elements For An Extension Request
While it is essential to note that the IRS gives an outline on the Form 4868 that one will need to fill in. The outline is such:
- Full name, address, and Social Security number of the taxpayer
- The estimated total tax liability of the taxpayer
- The amount the taxpayer has paid already
- How much the taxpayer is paying with the extension
Note that this postponement is only for the submission payment is not included. Any balance remaining such as unpaid taxes will be charged with interest and penalties immediately starting April 16th.
Can You File for an Extension if You are not Able to Pay Tax?
Of course, definitely, you should.
If you can’t pay in full, applying for an extension is the best thing you can do. On the one hand, the IRS hits you with a 5% monthly penalty for not filing, while the fine for late payment is just 0.5% per month. In conclusion, rely on timely tax returns (even with arrears) to gain a more significant amount of money.
In case you are worried because of the charged amount, it may be better to file directly and then arrange the payment later. Never, ever let your duty descend into oblivion.
What To Do If You Are Not In A Position To Clear Your Dues Right Away
If you are not in a position to clear the bill all at once, the IRS has set up various payment programs to make it simpler for you:
- Short-Term Payment PlanPay your full balance within 180 daysNo setup feeApply online or by phone
- Long-Term Installment AgreementMonthly payments over timeSetup fees range from $22 to $178 depending on the method of application and paymentFees are lower for direct debit plans filed online
- Offer of SettlementIf financial hardship can be established, the IRS may be inclined to give the taxpayer a relief amount of less than what the taxpayer owes. However, these often come with strict criteria that need to be met.
- Postponement of CollectionIn situations where genuine evidence of inability to pay is shown, the IRS may defer debt recovery until the financial conditions of the taxpayer improve.
You can also get the latest updates on these choices from IRS payment plans page.
Last Reminder: Act Before It’s Too Late
Even if the reason lies in the incomplete form of paperwork or you are short of time, never ever dare to ignore Tax Day. One way to do that is by completing Form 4868 and submitting reasonable payment–it could save you the most expensive kind of penalties.
Consequently, though you don’t have money, the IRS can still propose a project that is tailored to meet your needs.
Do hold in mind that filing post the due date without rectification can result in fines as high as 25%. Application for an extension or an easy setting of a payment plan is free. It’s a little effort that can bring you big savings.
Therefore, take action by April 15th, to ensure that you can send the file, make your payment, and get ready for the future. You will really thank yourself later on.
