Tax Extension Deadline Unaffected by Shutdown, IRS Furloughs

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Despite the ongoing government shutdown due to a budget stalemate, the IRS still expects taxpayers to submit their tax returns on time.

For individuals who requested an extension by the April 15 filing deadline, the deadline to file their 2024 income taxes without incurring penalties is Wednesday, October 15. With nearly half of IRS employees furloughed as the shutdown enters its third week, approximately 40,000 staff members (53.6%) are still on duty, according to the agency’s updated contingency plan.

However, the National Treasury Employees Union has cautioned that the shutdown could impact certain IRS operations.

“Taxpayers across the country may face challenges in obtaining the necessary assistance as they prepare to file their extension returns,” the union stated in a press release.

The IRS has reported receiving over 20 million extension requests this year, which accounts for more than 12% of all filers. Some taxpayers in regions affected by natural disasters have been granted additional time to file. For example, due to severe storms that began on April 2, taxpayers in Arkansas and Tennessee now have until November 3 to file their federal returns.

If you are wondering how the shutdown could impact your extended tax return, here are some key points to consider:

Do You Still Have to File Taxes During a Government Shutdown?

Yes, taxpayers must still fulfill their tax filing and payment obligations, even during a government shutdown. If you filed for a tax extension, you are required to submit your return by 11:59 p.m. on October 15 in your local time zone to avoid penalties.

Can You File Taxes Online During a Government Shutdown?

Electronic filing systems, including the IRS Free File program and Free File Fillable Forms, remain operational during the shutdown. Taxpayers can file their returns online through trusted partners for free, with Free File Fillable Forms available until October 20.

What Happens if You Miss the October 15 Tax Extension Deadline?

If you fail to meet the extended deadline, you may incur late-filing penalties and interest on any taxes owed. The late payment penalty is 0.5% of the unpaid balance per month, up to a maximum of 25%. It’s important to note that requesting a tax extension in April grants you additional time to file your return, not to pay any outstanding taxes.

Are There Other Options for Extending the Deadline to File Taxes?

Individuals affected by federally declared disasters may be eligible for extensions, and U.S. citizens living abroad on the due date receive an extra two months to file their taxes.