The 1 Thing to Do If You Can't Meet the IRS Tax Deadline

April 15 is days away, and that date, of course, marks the deadline to file federal returns and pay taxes for most taxpayers in the United States. However, if you aren't able to file your taxes by that April 15 deadline, there's something you should do to avoid getting in trouble, and that involves requesting an extension.

According to a January 2025 survey of more than 1,000 U.S. filers from IPX1031, about one in three American procrastinate on doing and filing their taxes. Plus, about 25% of Americans do not feel prepared to file their taxes, according to the study.

For this year's tax season, by March 21, the Internal Revenue Service (IRS) had received about 80 million individual returns of the 140 million expected, so people are obviously waiting until last minute to file and pay.

If you think you won't make the April 15 deadline this year, you need to file a tax extension by April 15. Doing so delays the federal filing deadline to Oct. 15.

However, remember that this is "an extension to file, not an extension to pay," Jo Anna Fellon, managing director at financial services firm CBIZ, tells CNBC.

If you aren't able to pay your balance by April 15, experts says you still need to file your return to avoid a more severe IRS penalty. Those who don't file on time are slapped with a failure-to-file penalty, which is 5% of unpaid taxes per month or partial month, capping off at 25%. In addition, the failure-to-pay penalty is 0.5% of taxes owed per month, also capping off at 25%. Both of these penalties also incur a 7% interest for individuals.

It's worth noting that while most tax filers have to file by April 15, the federal deadline could be later if your state or county was impacted by a natural disaster. Also, those in the military stationed abroad or in a combat zone during the tax filing season may get extensions, as well as those living and working abroad.

Of course, check with your tax professional on all of these matters to see what exceptions apply to you.

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