Do Not Miss the Extension Deadline: Why Filing on Time Matters
🚨 Do Not Miss the Extension Deadline: Why Filing on Time Matter
April 15 is a date every taxpayer knows. It is the deadline to either file your return or request an extension. For businesses filing S-Corporation or Partnership returns, that date comes a bit sooner, on March 15. But here is the catch: an extension only gives you extra time to file, not extra time to pay. Miss the extension deadline, even by a single day, and the IRS will gladly greet you with penalties, interest, and difficulties that can linger long after-tax season is over.
Here is what you need to know to avoid costly penalties and unnecessary IRS trouble.
⏰ Mark Your Calendar: Two Big Deadlines
September 15 → For S-Corporations and Partnerships (1120-S and 1065 returns)
October 15 → For Individuals (1040 returns)
If you miss either deadline, the IRS considers it the same as not filing at all. Extra time is not granted, except in extremely limited cases like federally declared disasters.
💸 Penalties & Interest: The IRS Late Fees
The IRS imposes significant costs for late filing and payment:
Failure-to-File Penalty: 5% of your unpaid taxes per month (or part of a month), up to a maximum of 25%.
Failure-to-Pay Penalty: 0.5% of the unpaid balance per month, also up to 25%.
Interest Charges: Accrued daily on any unpaid taxes. Interest compounds over time and continues until the balance is paid in full. The IRS interests rate change quarterly. 8% is the current annual average for past due payment interest.
Bottom line: The longer you wait, the larger your balance becomes.
📊 Penalties & Interest Examples: $5,000 Balance Due
Late Filing Failure-to-File Penalty Failure-to-Pay Penalty Interest Total Due
1Month Late $250 (5% of $5,000) $25 (0.5% of $5,000) ~$33 $5,308
3Month Late $750 (15% of $5,000) $75 (1.5% of $5,000) ~$100 $5,925
6Month Late $1,250 (25% of $5,000, maxed) $150 (3% of $5,000) ~$200 $6,600
Key Takeaway: The failure-to-file penalty is the biggest cost driver (5% per month adds up very quickly). Filing on time (even if you cannot pay right away) prevents the harshest penalty.
🚫 Additional Consequences of Late Filing
Lost Refunds: If you are due a refund but fail to file within three years of the original due date, the IRS will keep that money permanently.
Financing Delays: Mortgage lenders, business loan providers, and even financial aid programs typically require recent tax returns. Without them, approval can be delayed or denied.
State Penalties: Many states align their deadlines with the IRS. Missing the federal deadline may also trigger state-level penalties and interest.
Increased IRS Scrutiny: Failing to file can draw unwanted attention and increase the likelihood of audits or collection actions.
✅ The Bottom Line
Meeting the extension deadlines, September 15 for S-Corporations and Partnerships and October 15 for individuals, is the simplest way to avoid penalties, protect your refund, and keep your financial plans on track.
Even if you owe taxes, filing on time shows compliance and helps minimize additional fees. Do not wait until the last minute. Get organized, file your return, and move forward with peace of mind.
And remember, AP Moore Bookkeeping, LLC, is here to help ensure your return is filed accurately and on time, so you can avoid penalties, minimize interest, and keep your money working for the things that matter most.
📚 Sources
Internal Revenue Service (IRS). Failure to File or Pay Penalties.
Internal Revenue Service (IRS). Interest on Underpayments and Overpayments.
Internal Revenue Service (IRS). Claim Your Refund.
Internal Revenue Service (IRS). When to File.
⚖️Disclaimer: This blog is for informational purposes only and should not be considered legal, tax, or financial advice. Every taxpayer’s situation is unique, and you should consult a qualified tax professional before making de