October 15: Deadline for most taxpayers to file
Even though the U.S. government is shut down, the IRS continues to expect taxpayers who were given an extension earlier this spring to submit their 2023 federal income tax returns by Tuesday, October 15, at 11:59 p.m. local time.
“Taxpayers can continue to file, deposit, and pay federal income taxes on schedule,” an IRS spokesman told CBS News in a statement. “The lapse in appropriations does not change federal income tax obligations.”
Approximately 20 million Americans — or roughly 13% of the country’s taxpayers — request a six-month extension in a typical year, allowing themselves extra time to prepare their returns. The extension does not, however, delay payment of taxes owed. Any taxes that were due still needed to be paid by April 15, the regular filing deadline.
What the extension really means
Having an extension was beneficial for individuals with complicated finances, business owners, or anyone who required additional time to get documents such as 1099s or investment reports. The filing deadline provides them some space — but not for payments.
If you owe taxes, you were supposed to have paid and estimated them in April. Failing to do so will attract both penalties and interest on the sum due.
Therefore, if you asked for an extension in April, make sure that you file your finalised return electronically before October 15. Any filed after 11:59 p.m. local time on that day will be considered late.
Can you get an extension beyond October 15?
For most taxpayers, no — no automatic extension beyond October 15. That being said, there are a few exceptions for people who live in areas affected by natural disasters.
This year, the IRS has given an extension to November 3 to residents of Arkansas and Tennessee because of the severe April storms, flooding, and tornadoes that affected the states.
Likewise, citizens of Kentucky and parts of West Virginia have until November 3 to submit their federal returns, thanks to February storms that resulted in widespread damage.
The IRS says it will also provide additional time to members of the military who are serving in combat zones or abroad, but those are on a case-by-case basis.
Government shutdown impact
The government shutdown has put around half of the IRS workforce out of work since October 8, according to tax consulting firm Baker Tilly. However, essential functions — including taxpayer services, processing of returns, and issuing refunds — are still open and functioning.
So, even if your phone call to the IRS takes longer to be answered, electronic filing systems are still up and running, and tax payments can still be submitted as usual through IRS.gov or other approved providers.
Another good read: Will public employees receive their salaries on October 10? Here’s what you need to know about the first payday after the government shutdown on…
What if you don’t make it by the deadline?
If you don’t pay on time by October 15 and owe, the IRS will impose a late-filing penalty — typically 5% of the amount owed each month, not exceeding 25%.
However, the IRS does offer relief to taxpayers who can show a reasonable cause for late filing. You may include with your return a written explanation of why you were late, and the agency will waive the penalty.
If you qualify for a refund, you won’t be charged with a penalty for being late to file — but it’s always better to file early. The IRS will let you have three years from the original filing deadline to take your refund.
Final reminder: Don’t wait until the last minute
If you asked for a tax extension in April, this is the time to act. Electronic filing of your return on or before October 15 ensures timely processing of your tax and reduces the chances of penalties.
Even with the government partially shut down, the IRS is reminding taxpayers that their filing and payment obligations don’t change. For most Americans, this week is the deadline to finish the 2023 tax season — unless you are in a disaster state or qualify for a special extension.
Here is a good read: What happens if Trump sells your student loan to private investors?
Missing deadlines can cost you — but on-time filing gives you peace of mind.
