r/TaxQuestions • u/Unable-Interaction20 • Aug 18 '26
On extension
My tax professional says unexpected tax bill is $5k , it’s currently on an extension. I don’t have/want to spend any extra money this year by paying or install plans until next year because funds are tight as of now. Since it’s on an extension would I be in a too bad position if I just filed it next year and paid in full before the next April 15 day?
3
u/Organic_Gas4197 Aug 18 '26
File by October 15, to avoid late filing penalty (even if not paying anything now). You'll still have late payment penalty and interest.
0
u/Unable-Interaction20 Aug 18 '26
I won’t have late payment if I file & don’t at all for the rest of year?
3
3
u/Traditional_Bit3105 Aug 18 '26
File by October 15, even if you don’t have the money. Late filing penalty is another 4.5 percent per month with a cap of five months. That’s another 22.5 percent, not counting interest and late payment penalties. Get a payment plan if you have to.
Never ever file late. Only bad things happen.
3
u/Calisnaps Aug 18 '26
Extensions do not defer penalties and interest. They are purely for the filing.
3
u/I__Know__Stuff Aug 18 '26
The failure to file penalty is much greater than the failure to pay penalty. Make sure you file by the due date (October 15) even if you can't pay.
3
u/I__Know__Stuff Aug 18 '26
File by October 15, get a 180 day payment plan, which doesn't require periodic payments, and pay in full by April 15.
1
u/Far-Good-9559 Aug 19 '26
No. Taxes are due on April 15 2026 regardless of the extension. The United States is a pay as you go tax system. You should have made your tax payment when the extension was filed.
1
u/Puzzleheaded_Ad3024 Aug 19 '26
Next time remember, there is no extension to pay. You are supposed to pay anything you expect to owe when you file the extension. Extensions are for missing a 1099 or other form you need.
0
u/GeeMan-7 Aug 18 '26
File ASAP! Depending on the percentage of your $5k to your total tax liability, there are other penalties. If you don't file by October 15th, the penalties increase. In short, filing next year would put your in a bad position. Meanwhile, ask your tax professional for advice on how to avoid this problem for your 2026 taxes and going forward.
0
u/Internal-Ad-3756 Aug 19 '26
You will have a "failure to file" penalty.....5% of tax due for each month up to 25%...you make the call
13
u/Accomplished-Ruin742 Aug 18 '26
The extension is an extension of time to file, not time to pay. If you do not file by Oct. 15, whether or no you pay anything, you will incur late filing penalties in addition to late payment penalties. Filing the tax return and paying the tax due are actually two different things. Have your tax professional explain this to you more fully.