IN-DEPTH: Today Is the IRS Tax-Filing Deadline: Here’s What You Need to Know

The top of a form 1040 individual income tax return for 2005 is seen atop a stack on the same at the Des Plaines Public Library in Des Plaines, Ill., on March 23, 2006. Tim Boyle/Getty Images

The deadline has finally arrived for filing 2022 tax returns, with some last-minute tax-filing tips potentially proving helpful to taxpayers.

The tax-filing deadline this year is midnight on April 18 because the regular date of April 15 falls on a weekend, followed by a Monday holiday in the District of Columbia.

Tax returns can be filed electronically or in paper form and sent to the Internal Revenue Service by mail. While in some past years many post office locations stayed open until midnight, this year that is not the case.

“There are no plans to extend hours at any post offices across the country, especially since the IRS has given taxpayers until April 18 this year,” a U.S. Postal Service spokesperson told TODAY.com.

For those who don’t owe the IRS any money or have a refund coming, there is no penalty for failing to file a federal tax return by the deadline. This may not be the case for state taxes, however.

Still, there are some good reasons to file a tax return even if no money is owed to the IRS.

For instance, those who have a refund coming won’t get the money until they file. People who don’t file within three years of the original due date can lose their refund.

Also, the statute of limitations for the IRS to audit a tax return doesn’t start running out until a tax return is filed.

People who may not have prepared all their tax-related paperwork can ask for a six-month extension to file.

Some taxpayers—such as those who live and work outside the United States—get more time to file without having to ask for an extension.

Request an Extension

Anyone can request an automatic six-month extension, giving taxpayers until Oct. 16, 2023, to file their tax return.

“By filing either a return on time or requesting an extension by the April 18 filing deadline, they'll avoid the late-filing penalty, which can be 10 times as costly as the penalty for not paying,” the IRS said in a statement.

The late-filing penalty is normally 5 percent per month while the late-payment penalty in typically 0.5 percent per month. Both penalties max out at 25 percent.

An extension of time to file taxes is not an extension of time to pay taxes owed, however. The IRS recommends people who owe taxes should pay as much as they can by April 18 to minimize the late charges.

“Taxpayers who owe taxes should pay their entire obligation, or as much as they can, by the normal deadline to avoid penalties and interest,” the IRS said in a statement.

The interest rate for an individual’s unpaid taxes is currently 7 percent, compounded daily.

There are several ways taxpayers can request an extension.

One is by using the IRS Free File program software on IRS.gov, where individual tax filers can electronically request an extension on Form 4868. In order to get the extension, taxpayers must estimate their tax liability on this form, which must be filed by April 18.

Another way to get an extension is by making an electronic payment of at least the estimated amount of taxes owed using the IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), or by paying with a credit or debit card or digital wallet.

When a taxpayer makes this payment, they can indicate that it’s for an extension, and the IRS will automatically count it as an extension.

“There’s no need to file a separate Form 4868 extension request when making an electronic payment and indicating it’s for an extension. The IRS will automatically count it as an extension,” the IRS said in a statement.

Automatic Extensions

U.S. citizens and resident aliens who live and work outside the United States and Puerto Rico are automatically given a two-month extension to file their tax return. This means they have until June 15 to file.

But while such people can file later, they’re still obligated to pay any taxes owed by the April 18 deadline or they face penalties and interest.

Similarly, members of the U.S. military on duty outside the United States and Puerto Rico also have until June 15 to file their tax returns, though they also face an April 18 deadline to pay taxes owed.

However, if such individuals serve in combat zones, they have up to 180 days after they leave combat zones both to file and to pay any taxes due.

Also, taxpayers in certain disaster areas have also been granted automatic extensions to file their tax returns and to pay taxes owed.

Failure to Pay

Aside from those who are eligible for an extension on taxes owed, taxpayers are generally required to pay taxes by the April 18 deadline.

For any unpaid amounts owed beyond the April 18 deadline, the IRS charges a failure to pay penalty of 0.5 percent of the tax owed per month, which caps at 25 percent of the tax due.

If both a failure to file and a failure to pay penalty are charged for a given month, then the failure to file penalty is reduced by the amount of the failure to pay penalty.

What this means is that the combined penalty for a given month will never exceed 5 percent for each month or part of a month that the return was late.

While the failure to file penalty maxes out after five months (for a total of 25 percent), the failure to pay penalty continues until the owed tax is paid, up to a maximum of 25 percent of the unpaid tax.

There’s a way taxpayers can cut the failure to pay penalty rate in half, however. Taxpayers who cannot pay in full by the deadline can apply for a payment plan, including an installment agreement that allows them to pay off an outstanding balance over a period of time.

Once a taxpayer has set up an installment agreement with the IRS, the agency will reduce the failure to pay penalty to 0.25 percent of the tax due.

There’s an online resource called the Online Payment Agreement tool that taxpayers can use to set up a payment plan.

Penalty Relief

Taxpayers can apply to the IRS for penalty relief. The agency might agree to waive penalties for taxpayers who didn’t file on time or pay the taxes they owe under “reasonable cause” penalty relief provisions.

Extenuating circumstances that might qualify a taxpayer for such relief include things like illness or natural disasters.

There’s also a “first time penalty abate and administrative waiver” process that could allow taxpayers to qualify for penalty relief even if they’ve missed a filing deadline or a payment due date.

Generally, this type of relief applies to taxpayers who have filed all their tax returns, paid their outstanding balances, or set up an installment agreement, and have not been subject to IRS penalties over the past three years.

The first-time penalty abate is discretionary, however, meaning that the IRS is not required to grant the waiver. The agency may grant it as a one-time favor if the applicant has a good compliance history and meets program requirements.