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Your tax return must be postmarked by April 18th to be considered on time.  If you’re unable to meet the deadline, the best thing to do is request a tax extension.  This will give you more time to file an accurate return and can possibly minimize penalties.  However, there are some things you need to be aware of before making your decision.

You only have until April 18th to request an extension

Requesting a federal tax extension is fairly easy and free.  Simply submit Form 4868 to the IRS via mail or electronically.  It’s highly recommended that you enclose a payment for any taxes due to minimize penalties.  You must submit your request no later than April 18th.  Unlike with your federal taxes, there’s no one size fits all rule when it comes to obtaining a state tax extension.  Some places automatically give you an extra six months to file while others require you to request an extension.  So, check your state government website for more details.

The extended tax deadline is October 16th

Although filing a tax extension does buy you some extra time, that doesn’t mean you can drag your feet forever.  Your return must be in the IRS’ hands no later than October 16th.  The fastest and easiest way to do your taxes is with ezTaxReturn.  Since 1999, we’ve helped millions of taxpayers file with ease.

Filing a tax extension doesn’t give you extra time to pay

A popular misconception about tax extensions is that it gives you more time to pay any taxes you owe.  We hate to burst your bubble, but that’s not true.  The IRS still expects their money by April 18th.  Even if you can’t afford to pay the entire bill, at least pay as much as you can by the deadline.  Otherwise, you’ll begin accumulating interest and penalties on your unpaid balance once the clock strikes midnight.  The late payment penalty starts at 0.5% of your taxes each month and can climb up to 25%.  Meanwhile, the interest rate is the federal short-term rate plus 3 percent, and it compounds daily.

Miss the extended deadline and you may face a late filing penalty

If you requested a tax extension and miss that deadline too, prepare to be hit with hefty fines.  The late filing penalty is 5% of your unpaid taxes each month, up to a maximum of 25%.  If your return is more than 60 days late, the minimum penalty is $450 or 100% of your unpaid balance, whichever amount is smaller.