Does filing an extension give me more time to pay taxes owed?

by | Apr 22, 2025 | General Federal Filing, Individual Taxes

Here’s what HIVE AI had to say about “Does filing an extension give me more time to pay taxes owed?”:

Filing an Extension Does Not Give More Time to Pay Taxes Owed

The Clear Distinction Between Filing and Payment Extensions

Form 4868 does not extend the time for payment of tax. Although no payment of tax is necessary in order to receive the extension, penalties and interest may apply on any amounts that are not paid as of the original due date of the return. An automatic extension under the regulations does not extend the time for payment of tax. While no payment of tax is required in order to obtain the extension, failure to pay any tax as of the original due date of the return may subject the taxpayer to penalties and interest. T.D. 9229 T.D. 9229 T.D. 9229

An extension of time for filing a return does not operate to extend the time for payment of the tax. If an extension of time to file a return is obtained, but no extension of time for payment of the tax is granted, interest will be due on the tax not paid by the due date and the estate will be subject to all applicable late payment penalties. Tresuary Reg. 20.6081-1 Tresuary Reg. 20.6081-1

Payment Obligations Remain on the Original Due Date

Remember that an extension gives extra time to file; it does not give taxpayers extra time to pay if they owe. Taxpayers are obligated to pay taxes due on April 15, 2025, to avoid penalties and interest. IRS Newsroom – IR-2025-48

While an extension allows for extra time to gather, prepare and file paperwork, it’s important to remember that an extension of time to file taxes is not an extension of time to pay. Taxpayers who owe taxes should pay their entire obligation, or as much as they can, by the normal deadline to avoid penalties and interest. IRS Newsroom – IR-2023-84

Under section 6151(a), the person required to make a tax return shall pay such tax at the time and place fixed for filing the return (determined without regard to any extension of time for filing the return). Treasury Regulation § 1.6081-4(c) provides that the automatic extension of time for filing a return will not extend the time for payment of any tax due on such return. Dawson U.S. Tax Court Opinions: John Peter Zaimes

Consequences of Not Paying by the Original Due Date

While an extension allows for extra time to gather, prepare and file paperwork, it’s important to remember that an extension of time to file taxes is not an extension of time to pay. Taxpayers who owe should pay their entire obligation, or as much as they can, by the April 15 deadline to avoid penalties and interest. Taxpayers who pay as much as they can by the due date reduce the overall amount subject to penalty and interest charges. The interest rate for an individual’s unpaid taxes is currently 7%, compounded daily. The late-filing penalty is generally 5% per month and the late-payment penalty is normally 0.5% per month, both of which max out at 25%. IRS Newsroom – IR-2024-106

An extension of time to file a return does not extend the time to pay the tax and taxpayers generally must pay the tax by the original due date of the return. Section 6651(a)(2) imposes an addition to tax for payments made after the due date (determined with regard to any extension of time for payment) with respect to tax shown on a return. The section 6651(a)(2) addition to tax will not be imposed if the taxpayer shows that the failure was due to reasonable cause and not willful neglect. Notice 2013-24

How to Properly Request an Extension

Taxpayers requiring more time to file their taxes can easily request a six-month extension until Oct. 15. The IRS offers three options to request an extension to file:

  • Pay what you owe using an online payment option and check the box that you are paying as part of filing for an extension.
  • Request at no cost either through IRS Free File regardless of income, or
  • By submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15.

While an extension avoids late filing penalties and provides extra time for filing, an extension of time to file is not an extension of time to pay. Taxpayers can seek an extension to file by making a full or partial payment of their estimated income tax and indicating that the payment is for an extension. IRS Newsroom – IR-2025-36

Separate Process for Requesting Payment Extensions

If you need more time to pay your taxes, this requires a separate process from filing an extension. The IRS does have provisions for extending the time to pay taxes, but these are granted under different circumstances and require different applications:

Under regulations prescribed by the Secretary, the Secretary may extend the time for the payment of the amount determined as a deficiency of a tax imposed by chapter 1, 12, 41, 42, 43, or 44 for a period not to exceed 18 months from the date fixed for the payment of the deficiency, and in exceptional cases, for a further period not to exceed 12 months. An extension under this paragraph may be granted only where it is shown to the satisfaction of the Secretary that payment of a deficiency upon the date fixed for the payment thereof will result in undue hardship to the taxpayer. IRC § 6161(b)

The Internal Revenue Service may, at the request of the taxpayer, grant a reasonable extension of time for payment of the amount of any tax imposed and shown or required to be shown on any return. The period of such extension shall not exceed 6 months from the date fixed for payment of such tax, except that in the case of a taxpayer that is abroad, such extension may exceed 6 months. The granting of an extension of time for filing a return does not extend the time for the payment of the tax or any part thereof unless so specified in the extension. Tresuary Reg. 157.6161-1

Minimizing Penalties When You Can’t Pay in Full

If you cannot pay your taxes in full by the original due date, you should still:

  • File your return or extension request on time to avoid the larger late-filing penalty
  • Pay as much as you can by the original due date to reduce penalties and interest
  • Consider setting up a payment plan with the IRS

The IRS will work with taxpayers who cannot pay the full amount of tax they owe. Other options to pay, such as getting a loan or paying by credit card, may help resolve a tax debt. Most people can set up a payment plan on IRS.gov to pay off their balance over time. IRS Newsroom – IR-2024-106

Conclusion

Filing an extension gives you more time to prepare and file your tax return—up to six months beyond the original due date. However, it does not extend the time you have to pay any taxes owed. To avoid or minimize penalties and interest, you should pay your estimated tax liability by the original due date (typically April 15), even if you file for an extension.

If you’re unable to pay your taxes in full, the IRS offers payment plans and other options, but these require separate applications and are not automatically granted with a filing extension. The best approach is to pay as much as you can by the original due date and then explore payment options for any remaining balance.