You are indicating you did file an extension so you have until October 15, 2025 to file your return. This extension of time to file is not an extension to pay taxes due. File your return and pay any taxes due immediately to stop new penalties and interest from being accrued.
- Failure-to-file penalty: This penalty is typically 5% of your unpaid taxes for each month or part of a month that your return is late, with a maximum penalty of 25%.
- Failure-to-pay penalty: If you did not pay your taxes by the original April deadline, this penalty is 0.5% of the unpaid taxes for each month or part of a month. It also has a maximum of 25%.
If you are assessed penalties there are remedies.
When the IRS waives a penalty it is called abatement. If you are unable to get the penalties waived and cannot afford to pay in full it may benefit you to enter into an installment agreement to make manageable monthly payments. Here is a link with further information including the latest on The One Big Beautiful Bill: IRS penalty abatement
Have an amazing day. Evelyn M (CPA 20+ years)
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