The Clock Is Ticking: What to Know If You're on a Tax Extension in 2025

Summer is winding down, and while the kids are heading back to school and fall routines are picking up, there’s one more deadline that shouldn't be ignored. If you're on a tax extension, time is running out. The IRS deadline for extended individual tax returns in 2025 is Wednesday, October 15. That might seem far away, but it approaches faster than most people realize.

If you filed for an extension back in April, now is the time to get serious. Extensions give you more time to file—not more time to pay. If you owe taxes and haven’t paid anything yet, penalties and interest have been building since April 15.

Here’s what to know before the extension window closes.

What the October Deadline Really Means

The IRS offers a six-month extension to file, but it doesn’t delay your payment deadline. Any taxes owed were still due in April. If you haven’t filed your return or made a payment, you may already be dealing with:

• Late filing penalties: 5% of the unpaid tax per month, up to a maximum of 25%

• Late payment penalties: 0.5% per month, also up to 25%

• Interest charges: Currently around 8% annually, compounded daily and adjusted quarterly

Bottom line: the longer you wait, the more you could end up owing.

Why People Delay Filing (and Why It Backfires)

Common reasons for filing delays include:

• Missing tax documents like W-2s, 1099s, or K-1s

• Incomplete records from self-employment or freelance work

• Uncertainty around investment income or deductions

• General avoidance or being overwhelmed

While these are all valid concerns, letting them stop you from filing increases the financial pressure. Even if you're still waiting on one or two documents, it may be better to file with reasonable estimates and amend later rather than miss the deadline entirely.

What Happens If You Miss the October 15 Deadline

If you don’t file by the extension deadline, your return is considered late. That means:

• You could face late filing penalties if you owe taxes

• Any refund you’re due could be delayed or forfeited

• The IRS could file a substitute return on your behalf, often without credits or deductions

In more serious cases, ignoring filing obligations increases the risk of enforcement actions or audits—especially if the IRS already has records of income that hasn’t been reported.

Filed But Didn’t Pay? Here’s What to Do

If you filed your return during the extension period but haven’t paid your full balance, penalties and interest are still accruing. However, making even a partial payment can help reduce additional charges.

You have several options:

• Use IRS Direct Pay to make a secure payment

• Apply for a short-term or long-term payment plan

• Request penalty relief if you have a reasonable cause for delay

Don’t wait to act—penalties stack fast.

Filing Tips to Avoid More Trouble

Before you hit submit, make sure:

• Your name, address, and Social Security number are correct

• You report all income, even if you didn’t receive a 1099

• Deductions and credits are properly documented

• You opt for direct deposit to speed up any refund

If your return is complex, don’t try to guess your way through it. A tax advisor can help you file accurately and avoid mistakes that cost more later.

Finish the Year Strong

Tax extensions are helpful when used wisely, but they aren’t a free pass. Waiting too long to act can lead to penalties, stress, and financial setbacks.

If you’re feeling overwhelmed or simply want to wrap things up the right way, Certainty Tax Advisors is ready to help. Whether you need to file, pay, or get answers to a tricky situation, professional support can save time and give you peace of mind.

Call 718-676-4185 or use the contact form to schedule a consultation.