Filing taxes can be stressful, and keeping track of everything is sometimes challenging. Navigating the various deadlines for tax forms can take time and effort. If you need more time to file, requesting a tax extension might be a good solution. Whether you are filing as an individual, a corporation, or a nonprofit, it is crucial to know the due dates, how to request an extension if needed, and the penalties for failing to file or pay on time. This article explains how U.S. tax extension filing works, the due dates you should know, and the penalties you might face if things go wrong.
What is a Tax Extension?
A tax extension gives you extra time to file your tax return. However, it is essential to note that this extension is only for filing your return, not for paying any taxes you owe.
Common Tax forms:
1. Form 1040 – Individual Tax Return
2. Form 1041 – Trust and Estate Tax Return
3. Form 1065 – Partnership Tax Return
4. Form 1120 – Corporation Tax Return
5. Form 990 – Nonprofit Tax Return
6. Form 706 – Estate Tax Return
Extensions Summary for 2025
Here is a summary of extensions for various forms in 2025:
Form 1040:
Payment: Any taxes owed must be paid by the original due date (April 15, 2025) to avoid penalties and interest.
Extension: Automatic six-month extension to October 15, 2025.
Form 1041:
Payment: Taxes owed must be paid by the original due date (April 15, 2025).
Extension: Automatic five-month extension to September 30, 2025.
Form 1065:
Payment: Taxes owed must be paid by the original due date (March 15, 2025).
Extension: Automatic six-month extension to September 15, 2025.
Form 1120:
Payment: Taxes owed must be paid by the original due date (April 15, 2025).
Extension: Automatic six-month extension to October 15, 2025.
Form 990:
Payment: No payment is required for Form 990, but any taxes owed must be settled by the original due date (May 15, 2025).
Extension: Automatic six-month extension to November 15, 2025.
Form 706:
Payment: Taxes owed must be paid by the original due date (nine months after the date of death) to avoid penalties and interest.
Extension: Generally, a six-month extension is available.
Extensions can alleviate the pressure of filing on time. However, estimating and paying any owed taxes by the original deadlines is crucial to avoid penalties.
Where to File for Extensions
Filing your extension depends on which form you are using.
- For Forms 1040, 1065, and 1120: You can file your extensions electronically through the Internal Revenue Service (“IRS”) or submit a paper form via mail.
- For Form 1041: Use the appropriate mailing address listed in the form’s instructions for paper filing.
- For Form 990: File electronically using Form 8868.
- Form 706: Must be filed using Form 706 directly.
Penalties for Late Filing
Penalties for filing beyond the deadline could be quite hefty. It is generally calculated based on the amount you owe.
- Form 1040 Penalty: Up to 5% of unpaid tax due for each month the return is late, up to a maximum of 25%.
- Form 1041 Penalty: Typically, the same as Form 1040 if later than six months.
- Form 1065 Penalty: Generally, $210 per month, per partner.
- Form 1120 Penalty: Up to 5% of the unpaid tax due for each month (or part of a month)
the return is late, up to a maximum of 25%.
- Form 1120S Penalty: Usually $210 per month, up to a maximum of 12 months.
- Form 990 Penalty: Generally, $20 per day, up to a maximum of $10,500 (or $100 per day for larger organizations, up to $50,000).
- Form 706 Penalty: 5% of the tax due for each month the return is late, up to a maximum of 25%.
Filing on time is essential to avoid these penalties and any potential interest on the unpaid tax.
We can assist you with specific advice tailored to your situation.
