The October 15 deadline nears for many American Taxpayers who received an extension to file tax returns that were due April 15.
The IRS granted six-month extensions to taxpayers who needed more time to complete their return. Before April 15, taxpayers requesting an extension had to file an appropriate form, estimate their tax liability and pay any amount due, according to the IRS.
An extension gives extra time to file a tax return but not extra time to pay any taxes owed. There’s also a late-filing penalty, normally five percent per month based on the unpaid tax balance. Even if you can’t pay the full amount by April 15, any payment will reduce or eliminate interest and late-payment penalties.