Tax Day is just around the corner. The deadline to file your 2024 taxes is April 15, 2025. If you cannot complete your taxes by the deadline, you can request an automatic six-month extension to file your taxes. The deadline to apply for a tax extension also falls on April 15.
With all the turmoil at the IRS these days, I’d rather see you take the time (on extension) to file your taxes properly rather than rushing and having to amend your taxes later. Doing so could lead to delays in processing any refunds owed, among other things.
There is some good news for all of you with complex tax-planning needs. Applying for a 2024 tax filing extension will likely be one of the easiest parts of completing your taxes. Reminder: You must actually file for an extension. The IRS does not automatically give you more time.
There is no shame in filing for a tax extension. I’m guessing some of you will procrastinate and wait until the night before taxes are due to gather your information (not recommended). As a certified financial planner who does a ton of proactive tax planning, I work with many clients who own businesses and have more complicated tax situations. Even when everything is organized and given to their tax experts early, they often end up filing on an extension. Other times, they need a little extra time to come up with large tax-saving cash balance plan contributions.
The reality is that the more complex your tax situation is, the more likely you are to need a tax extension. Some of you may not even have a choice. You may still be waiting on tax forms like 1099s or K-1s. For those who own businesses or are self-employed, you may be filing tax returns for your business and yourself as an individual. The good news is this also brings with it many more opportunities for proactive tax planning, not to mention tax-saving retirement plans like Solo 401(k)s or even Cash Balance Pension Plans, which can potentially save you tens to hundreds of thousands of dollars in taxes each year.
What Is A Tax Filing Extension?
An extension is just permission to take additional time to file your taxes. You will still need to pay any taxes owed to the government by April 15. If you cannot pay your taxes in full, the IRS may be willing to offer a payment plan.
How To Easily File For A Tax Extension
Go to the IRS website and fill out IRS Form 4868. You can access this form directly at this link and file it yourself. Also, it is free. If you are working with a paid tax preparer or CPA, they will likely take care of this for you, but confirm it has been filed.
Form 4868 will only apply to your federal tax extension. Many states will also require you to file for an extension directly with them. I won’t be listing each state’s requirements here, so take a second and check with your state tax authority to see what form they need to file an extension, if any.
For all the do-it-yourself tax preparers, tax software like TurboTax should have the option to file for an extension within their tax filing software. If you are in the middle of filing with them, this may be an easier way to file for a tax extension. If not, you can use the IRS form listed above.
You will have to answer a few short questions to file for an extension. The big ones are estimated taxes owed and the approximate amount of taxes paid already. Beyond that, receiving a tax extension is basically an automatic process. You will not be required to provide an excuse for filing late. Your tax extension filing should be granted if you fill in the form completely and correctly.
You will have an extra six months to file with a tax extension. That means your new deadline to file your 2024 taxes will be October 15, 2025. Please don’t procrastinate again until October 15 to begin filing. It’s more likely you will make costly tax mistakes the later you file. Tax mistakes can bring a dreaded IRS audit or leave you paying more taxes than you are legally obligated to do.
What Happens When You Don’t File A Tax Extension?
The IRS likes to pile on penalties and interest on taxpayers who don’t meet their deadlines. The late filing penalty is five percent per month on any unpaid taxes. This caps out at 25% of unpaid taxes. For those who file on time but forget to pay on time, you will get slapped with a failure to pay a penalty of 0.5% of unpaid taxes per month. This will continue until you are up to date.
When Is The 2024 Tax-Filing Deadline In California?
For most California counties, the IRS and California Franchise Tax Board extended the federal and state tax deadline to October 15, 2025. This means residents have about six more months to file their returns and make any necessary tax payments.
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