The Final Count Down

October 15 Tax Deadline

For many taxpayers, October 15 is the final date to file a tax return for the prior year. This extra time was only for filing and not for paying taxes owed. Any tax liability needed to be paid (or at least reasonably estimated and paid) by the original April deadline to avoid penalties and interest.

Thus, October 15 is a critical “last checkpoint” for extension filers.

The October Deadline applies to:

• Individual taxpayers who timely requested an extension via Form 4868 or ele

  ctronic filing methods on or before April 15, 2025, the original deadline.

• Many business entities: e.g., calendar-year business who’s original (or extended) deadline falls in the April–October window.

• Taxpayers in disaster-affected areas: in some cases, the IRS has provided relief by extending deadlines to October 15. For example, California wildfire-affected taxpayers had federal deadlines postponed through October 15.

• Some taxpayers, such as those living abroad, in combat zones, etc., may be eligible for alternative deadlines.

What Happens If You Miss October 15

Missing the extension deadline has consequences:

• You may incur failure-to-file penalties. These typically range from 5% of unpaid tax per month (or fraction thereof), up to 25% maximum.

• Late payment penalties may also apply. Even if you file by the October 15^th deadline but didn’t pay by April. The late-payment penalty generally can be 0.5% per month (or fraction thereof) up to 25%.

(Taxpayers with a good compliance history may qualify for the IRS First-Time Abatement program to have failure-to-file, failure-to-pay, and failure-to-deposit penalties waived. This is a one-time offer.)

• Interest accrues on any unpaid tax from the original due date, April 15^th.

• If you’re very late (e.g. more than 60 days), you could face minimum penalties (for instance, a flat minimum or up to 100% of unpaid tax in some cases).

There is still time.

Action Steps Before October 15

Here’s a checklist to help you stay on track:

1. Gather all tax documents

   Collect W-2s, 1099s, K-1s, mortgage and investment statements, deductions, credits, etc.

   
   

2. Prepare tax returns- IRS Free File or Third-Party tax prep provider.

   Many taxpayers can file electronically (and for free) up to October 15.

   
   

3. Consult a tax advisor if you feel overwhelmed or have complex situation.

   If you have business income, pass-through entities, foreign income, etc., professional help can reduce errors and surprises.

Final Thoughts

 If you successfully filed for an extension, the time has come to get those tax returns done. Start now, assemble documents, double-check deductions and credits, and file right away. However, if this a bit to much,  Tax Professionals are ready and waiting to assist because October 15^th is around the corner.