Newsbreak: Don’t Miss the Deadline! IRS Urges Taxpayers to File Taxes by April 18 to Avoid Hefty Penalties

The Internal Revenue Service (IRS) has reminded taxpayers to file their tax returns and make outstanding payments by the April 18 deadline to avoid late filing and late payment penalties. For those who cannot pay in full by the deadline, the IRS recommends requesting a six-month filing extension to avoid penalties and interest for failing to file on time, according to the official website of the IRS on March 8, 2023.

The IRS may levy failure-to-file fines on taxpayers who owe money but do not request an extension and miss the April 18 deadline to file. The IRS normally charges 5% of the unpaid tax due for each month they are late with the payment, with a maximum late penalty of 25% of one’s unpaid taxes, according to the IRS.

If you don’t owe the IRS any money or have a refund coming, you won’t be penalized for not filing a federal tax return on time. But if you’re owed a refund, you won’t receive it until you file. The IRS recommends filing for payment plans or penalty relief for outstanding balances or extenuating circumstances.

The IRS emphasizes that the first-time penalty abatement is discretionary, but it may grant it as a one-time favor if the applicant has a good compliance history and meets program requirements. The agency also advises that the failure to pay penalty can be reduced to 0.25% of the tax due once an installment agreement is set up, as reported by MARCA on March 13, 2022. Taxpayers can use the Online Payment Agreement tool to set up a payment plan.

Tax payment day, marked on a calendar on April 15, 2020