An extension gives you extra time to file, but not extra time to pay. After you file an extension, if you owe taxes when you file your return, you might also have to pay penalties and interest on the tax due.

Do you have to pay taxes if you file an extension?

An extension of time to file your return does not grant you any extension of time to pay your taxes. You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties. You must file your extension request no later than the regular due date of your return.

What happens if you file your taxes late after an extension?

File to reduce penalties and interest An extension to file is not an extension to pay. Ordinarily, the failure to file penalty is 5% of the tax owed for each month or part of a month that a tax return is late, up to five months, reduced by the failure to pay penalty amount for any month where both penalties apply.

How to file for a tax extension for 2015?

How To File For A Tax Extension 2015: Get Six More Months To File Your Federal And State Taxes. It’s possible to file for a six-month extension on your taxes, but you still have to pay an estimated amount by April 15.

Is there a six month extension for taxes?

The standard six-month tax extension allows you to file your tax return after the usual deadline. However, it doesn’t buy you more time to pay any taxes you may owe. That means that if you don’t pay your tax balance by the filing deadline (April 15 in 2020), you’ll get hit with penalty and interest.

How does the IRS process an extension of time?

IRS processing of extensions. Taxpayers can file extensions of time to file income tax returns electronically or by paper. When the extension is filed electronically, the IRS will post the extension to the appropriate taxpayer’s account under the relevant tax form and tax period.

Is there a penalty for filing an extension?

Keep in mind, you may not be subject to a late payment penalty if you filed a tax extension on time (by the original deadline of your return) and paid at least 90% of your tax liability with your extension. At FileLater.com, you can file your tax extension online and electronically pay your tax due using our IRS-approved e-file system.