October 15 Tax Deadline Penalty Rules

Missing the October 15 extended deadline triggers several penalties: Late Filing Penalty: 5% of unpaid tax per month (or part of month) up to 25%. Minimum penalty: $485 (2024) if return is over 60 days late and tax is owed. Late Payment Penalty: 0.5% per month of unpaid tax, up to 25%. Runs from original due date (April 15), not extension deadline. Combined Penalty Limit: Maximum combined penalty is 5% per month when both apply. Interest: Accrues from original due date on both tax and penalties. Rates adjust quarterly (currently around 8% annually). Penalty Relief Options: First-time penalty abatement if good compliance history. Reasonable cause relief for circumstances beyond taxpayer control. No Penalty Situations: No late filing penalty if refund is due (but delay in refund processing). Penalty may be reduced if most tax was paid by original deadline. Prevention Strategies: File by April 15 or request extension. Pay estimated tax owed by April 15 even if extending. Consider electronic filing for confirmation of timely submission. State Considerations: State penalties may differ from federal. Some states require separate extensions and have different penalty structures.