Tax Return Extensions for 2025

Filing taxes can be a challenging process, whether you’re an individual managing personal finances or a business navigating complex tax obligations. Fortunately, the IRS provides an option to request a tax return extension, giving taxpayers additional time to file their returns. This extension can help reduce stress, avoid errors, and ensure compliance with tax laws. In this article, we’ll cover everything you need to know about tax return extensions for the 2025 tax year, including how to apply, deadlines, and key considerations.

What Is a Tax Return Extension?

A tax return extension allows taxpayers to extend the deadline for filing their federal income tax returns. For the 2025 tax year, the standard filing deadline is April 15, 2025. By requesting an extension, you can push this deadline to October 15, 2025. However, it’s important to note that an extension to file does not grant an extension to pay any taxes owed. You must estimate and pay your tax liability by the original filing deadline to avoid penalties and interest.

How to Request a Tax Return Extension

Requesting a tax return extension is a straightforward process. Here’s how you can do it:

  1. File the Appropriate Form:

·       Use Form 4868 to request an extension for individual tax returns.

·       Use Form 7004 to request an extension for business tax returns, such as those for corporations, partnerships, and certain trusts.
These forms can be filed electronically or by mail.

  1. Make a Payment Toward Taxes Owed:
    You can also request an extension by making a payment toward your estimated tax liability. When making the payment, indicate that it is for an extension. This can be done through IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or by using a debit or credit card.

  2. Use IRS Free File:
    The IRS Free File program allows taxpayers to electronically request an extension for free. This is a quick and convenient option for those who prefer online filing.

Key Deadlines for Tax Return Extensions

·       April 15, 2025: This is the deadline to file an extension request or make a payment to avoid late-filing penalties.

·       October 15, 2025: This is the extended deadline to file your tax return if you’ve successfully requested an extension.

·       Entity-Specific Deadlines: For certain business entities, such as partnerships and S-corporations, the extended deadline may fall earlier, typically September 15, 2025.

If April 15 falls on a weekend or legal holiday, the deadline is moved to the next business day.

Who Qualifies for Automatic Extensions?

Some taxpayers may qualify for automatic extensions without needing to file a formal request. These include:

·       Taxpayers Living Abroad: U.S. citizens and residents living outside the United States and Puerto Rico on the regular due date of their return automatically receive a two-month extension to file and pay taxes, moving the deadline to June 15, 2025. However, interest will still accrue on any unpaid taxes after April 15.

·       Military Members in Combat Zones: Members of the military serving in combat zones or qualified hazardous duty areas are granted an automatic extension of at least 180 days to file and pay taxes. Spouses of these individuals may also qualify.

·       Disaster-Area Taxpayers: Individuals and businesses in federally declared disaster areas may receive additional time to file and pay taxes. The IRS provides automatic relief to affected taxpayers based on their address of record.

Why Request a Tax Return Extension?

There are many reasons why taxpayers—both individuals and businesses—might need more time to file their returns:

·       Incomplete Documentation: Waiting on tax forms such as W-2s, 1099s, K-1s, or other financial records.

·       Complex Tax Situations: Managing multiple income streams, investments, or deductions.

·       Unexpected Life or Business Events: Illness, emergencies, or operational disruptions.

·       Avoiding Errors: Rushing to file can lead to mistakes, which may delay refunds or trigger audits.

Requesting an extension provides the time needed to ensure accuracy and compliance.

Important Considerations

While a tax return extension offers additional time to file, there are a few critical points to keep in mind:

  1. Pay Taxes Owed by April 15: To avoid penalties and interest, you must pay your estimated tax liability by the original filing deadline.

  2. Late-Filing Penalty: If you fail to file your return or request an extension by April 15, you may face a late-filing penalty of 5% of the unpaid taxes for each month the return is late, up to a maximum of 25%.

  3. Interest on Unpaid Taxes: Interest accrues daily on any unpaid taxes starting from April 15, even if you’ve requested an extension.

Tips for a Smooth Extension Process

To ensure a hassle-free extension process, follow these tips:

·       Double-Check Your Information: Ensure all details, such as names, Social Security numbers, and Employer Identification Numbers (EINs), are accurate on the extension form.

·       Estimate Taxes Carefully: Use prior-year returns and current financial information to estimate your tax liability as accurately as possible.

·       Keep Records: Save copies of your extension request and any payment confirmations for your records.

Conclusion

A tax return extension can be a valuable tool for individuals and businesses that need extra time to file. By understanding the process and meeting the necessary deadlines, you can avoid penalties and ensure your return is accurate.

Catherine Roe