IRS: Tax Extensions Delay Paperwork, Not Payments
The Internal Revenue Service (IRS) has clarified that filing an extension for income taxes only postpones the deadline for submitting paperwork, not for making payments. Taxpayers who have filed an extension are still subject to penalties if their tax bill is not settled by the original due date. To avoid accumulating daily IRS penalties, taxpayers are advised to pay their outstanding balances promptly.
Taxpayers who file an extension for their income taxes should be aware that this action delays the deadline for submitting the required paperwork, but it does not extend the due date for payment. The Internal Revenue Service (IRS) continues to assess penalties on any outstanding tax balances, even when a filing extension has been granted.
An extension provides additional time for individuals to prepare and submit their tax forms. However, this administrative grace period does not apply to the financial obligation of paying taxes owed. Penalties for late payments will still accrue from the original payment deadline.
To prevent daily IRS penalties from being applied, taxpayers are advised to settle their tax obligations by the original payment deadline, irrespective of whether they have requested an extension for their tax paperwork.
According to MarketWatch Top Stories, an extension delays paperwork, but not payment.
