As the 2024 tax year inches toward its conclusion, the IRS is issuing a reminder to taxpayers about an important deadline that looms large for millions—October 15, the deadline for those who have filed for a tax extension. This date is critical for individuals who sought extra time to file their 2023 tax returns. The extension provides a grace period of an additional six months beyond the regular April filing deadline, but now, time is quickly running out.

In this article, we’ll explore the key details of the October 15 tax-filing extension, the importance of meeting the deadline, penalties for late submissions, and recent updates from the IRS concerning extensions for taxpayers in disaster zones and combat zones, including those affected by the recent conflict in Israel.

Understand the Tax-Filing Extension

The IRS grants an automatic six-month filing extension to taxpayers who need more time to gather necessary documentation and file their returns accurately. The typical deadline for filing federal taxes is April 15 (or the next business day if April 15 falls on a weekend or holiday), but taxpayers who filed IRS Form 4868 before this date have until October 15 to submit their returns.

It’s important to note that the extension applies only to the filing of your tax return, not to any taxes owed. Taxes were due by the regular April deadline, and any amount not paid by that time may incur penalties and interest. The extension is solely for the paperwork, giving taxpayers a little breathing room to finalize their documentation.

IRS Extensions for Combat and Disaster Zones

In addition to the general Oct. 15 extension, the IRS has provided extended deadlines for individuals and businesses affected by natural disasters, combat zones, or other extreme circumstances. Recent updates indicate that taxpayers in federally declared disaster zones, such as those impacted by hurricanes, wildfires, and other natural disasters, have more time to file. Similarly, individuals serving in combat zones—such as U.S. military personnel currently deployed in areas like Israel—may be eligible for additional extensions.

For those affected by recent disasters, including Hurricane Helene and ongoing wildfires in Hawaii and California, the IRS has granted additional time to file tax returns and make payments. These extensions vary depending on the severity of the disaster and the specific region affected. It’s crucial for taxpayers to check the IRS website or consult with a tax professional to understand the specific extension available for their area.

How to File by the Oct. 15 Deadline

If you’ve applied for the extension and now face the October 15 deadline, there are several steps you can take to ensure you file correctly and on time.

1. Gather All Necessary Documents: Ensure you have all relevant documents, including W-2s, 1099 forms, and records of deductions. For those who are self-employed, this also includes business expenses, home office deductions, and other applicable write-offs.
2. Use IRS Free File or Tax Software: The IRS provides an online resource called Free File, which allows individuals with an adjusted gross income (AGI) of $73,000 or less to file electronically for free. Taxpayers can also use commercial tax software for a smooth filing process.
3. Double Check for Errors: Before submitting, verify that all information is correct. Errors such as incorrect Social Security numbers, mismatched data, or missing information could lead to delays and potential penalties.
4. Submit Electronically: Filing electronically is often faster and more accurate than mailing a paper return. E-filing allows you to get immediate confirmation that the IRS has received your return, and in many cases, it speeds up the processing of refunds.
5. Request Direct Deposit: If you expect a refund, select the direct deposit option for a faster return. The IRS typically processes refunds within 21 days of receipt, though paper returns may take longer.
6. Payment Plans: If you owe taxes and are unable to pay the full amount, consider setting up a payment plan through the IRS. This can help you avoid additional penalties and interest while allowing you to pay off your tax debt over time.

Penalties for Missing the Oct. 15 Deadline

Failing to meet the October 15 deadline can result in penalties and interest, especially if taxes were not fully paid by April 15. The late-filing penalty is typically 5% of the unpaid taxes for each month the return is late, up to a maximum of 25%. The late-payment penalty is 0.5% of unpaid taxes for each month they are late.

For taxpayers who owe and cannot pay, it is still important to file a return by October 15 to avoid the larger penalty associated with failing to file. By filing the return, even without payment, you can minimize penalties and show the IRS your intent to comply.

Special Considerations for Taxpayers Abroad

Taxpayers living abroad also face special deadlines. U.S. citizens and resident aliens who were out of the country on the April filing deadline received an automatic two-month extension, moving their due date to June 15. If these taxpayers applied for an additional extension, their new deadline coincides with the Oct. 15 deadline. It’s important for those living abroad to remember that penalties and interest for unpaid taxes are still calculated from April 15.

Final Reminder from the IRS

The IRS is encouraging all taxpayers to meet the October 15 filing deadline if they received an extension. If you are unsure whether you’ve filed properly or need assistance, the IRS website provides helpful tools and resources, including access to IRS Free File, payment plans, and more.

Conclusion

As the October 15 deadline approaches, it’s important to act promptly and ensure your taxes are filed on time to avoid penalties. For taxpayers in disaster or combat zones, additional time may be available, so check with the IRS to see if you qualify for these exceptions. Whether you’re filing electronically or by mail, accuracy is key, so double-check your documentation and use online resources to help guide you through the process.

By staying informed and proactive, you can meet the deadline and minimize any potential complications with your 2023 tax return.

Important Dates:

• October 15, 2024: Final deadline for 2023 tax returns if you filed for an extension.
• Additional extensions: Available for taxpayers in combat zones and disaster areas.

For more detailed information, visit the IRS official website.