The clock is ticking for millions of Americans as the ultimate deadline for submitting their 2022 tax returns rapidly approaches in October 2023. Each year, millions of individuals seek an automatic extension for filing their taxes beyond the initial April deadline. As of mid-May, the Internal Revenue Service (IRS) reported that over 142 million taxpayers had already submitted their returns. However, the agency was anticipating approximately 168 million returns in total, indicating that over 25 million taxpayers were holding off on filing beyond the original April 18 deadline.
As announced by the IRS, the final deadline to file your tax return is set for Monday, October 16. Failure to meet this deadline will result in the accrual of substantial penalties. According to the IRS, the late-filing penalty can be up to ten times as costly as the penalty for failing to pay on time.
Tax Filing Extension Deadline Is Here – What to Know
In an effort to ensure taxpayers are well-informed, the IRS has issued a timely reminder regarding the impending deadline for tax filing extensions. Those who sought an extension to submit their 2022 tax returns must take note that the deadline for filing Form 1040 falls on Monday, October 16, 2023. Failing to meet this deadline could result in potential late filing penalties.
Also, those taxpayers that happen to reside in disaster-affected regions in California, as well as parts of Alabama and Georgia, have also been granted an extension until October 16, 2023. Individuals with an IRS address of record in areas covered by Federal Emergency Management Agency (FEMA) disaster declarations, as well as those returning from a combat zone, may be eligible for further extensions.
Those are the following:
- Taxpayers impacted by flooding in Illinois and Alaska have until October 31, 2023, to finalize their filings.
- For those affected by flooding in Vermont, the deadline is extended until November 15, 2023.
- Recent natural disasters, such as the Maui fires and hurricane Idalia, have left their mark on several regions, including parts of Florida, South Carolina, and Georgia. Taxpayers residing in the counties of Maui, Hawaii, and numerous counties in these three states, and Georgia now have until February 24, 2024, to complete various individual and business tax returns.
Keep in mind that this list is regularly updated by the IRS, in case new natural disasters happen in new areas of the United States. In addition, members of the military and other individuals serving in combat zones typically enjoy a 180-day window after leaving the combat zone to fulfill their tax obligations, including filing returns and settling any taxes owed.
What Happen If I Don’t Fill My Taxes on Time?
Failing to file your taxes on time can have a range of consequences you’ll not be able to escape from. The IRS imposes a failure-to-file penalty, which is generally 5% of the unpaid taxes for each month your return is late, up to a maximum of 25% of the unpaid taxes. Additionally, you’ll be charged interest on the unpaid taxes, which compounds daily.
But you can lose even more money: If you’re entitled to a tax refund, failing to file means you won’t receive it. Many individuals rely on their tax refunds to cover essential expenses or make investments. You can also be forbidden to claim the Earned Income Tax Credit (EITC) or Child Tax Credit, if applies.
In severe cases, the IRS can take legal action to collect the taxes owed. This may involve placing a tax lien on your property or garnishing your wages.