Time’s up for millions of Americans: The final deadline to file your 2022 taxes is approaching quickly.
Millions of people file every year for an automatic tax-filing extension beyond the original April deadline. By mid-May, more than 142 million taxpayers had filed returns, according to the IRS. But the agency expected about 168 million returns, which means more than 25 million taxpayers were waiting beyond the April 18 deadline to file.
Now, there’s no more procrastinating. The final deadline to file your tax return is Monday, Oct. 16. If you don’t meet it, expect to start accumulating hefty penalties. The late-filing penalty “can be 10 times as costly as the penalty for not paying,” the IRS said.
How much are IRS penalties if I miss the deadline?
The failure-to-file penalty depends on how late your filing is and how much you owe, and the clock started on the original due date of April 18, not the Oct. 16 extension deadline. Interest is also charged on penalties, meaning your balance will continue to balloon until it’s paid in full.
The interest rate for an individual’s unpaid taxes is 7%, compounded daily. The monthly late-filing penalty is generally 5% and the late-payment penalty is normally 0.5%. Both max out at 25%, the IRS said.
Even if you owe money you can’t pay, file anyway. “The worst thing to do is not to file,” said Phil Drudy, managing director and head of tax at CBIZ MHM’s New York Tax Department.
