It is that time of the here to file taxes. With the April 15 tax deadline here, there is still a way out if your return is ready. The Internal Revenue Service (IRS) allows taxpayers to request an extension, giving them until October 15 to file without rushing through the process.

This extra time can help you avoid mistakes and ensure your return is filed correctly. The process itself is simple and requires only basic details such as your name, address, Social Security number, and an estimate of your taxes owed or refund expected.

You can apply online using IRS Free File or submit Form 4868. If you choose to send the form by post, it is important to make sure it is properly postmarked by April 15 to avoid any issues.

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Extension does not mean delay in payment

One key rule that cannot be ignored is that an extension only gives you more time to file, not more time to pay. If you owe taxes, the payment is still due by April 15. Missing this deadline can lead to penalties and interest that continue to build over time. If you are expecting a refund or do not owe any taxes, the process is much more relaxed. There is no penalty for filing late in such cases, although your refund will only be issued after you file your return. For those who still have taxes to pay, making an online payment and selecting “extension” or Form 4868 as the reason will automatically count as your extension request, so you do not need to file the form separately.

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Missing the deadline can be costly

Failing to file your return or request an extension by April 15 can quickly become expensive. The IRS charges a penalty of 5 percent of unpaid taxes for every month of delay, up to a maximum of 25 percent. If the delay goes beyond 60 days, a minimum penalty applies, which could either be a fixed amount or the total tax due, whichever is lower. On top of this, if your taxes remain unpaid, an additional penalty of 0.5 percent per month is charged. Interest is also added daily on the unpaid amount, which means the total you owe can grow faster than expected.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making investment decisions.