Tax Extension Penalty Guide for Late Filers (2026)
Understand IRS extension penalties: failure-to-file, failure-to-pay, and interest charges. Calculate penalty costs and request abatement options.
Summary
Tax extensions extend filing deadline but not payment deadline. This guide explains penalty calculations, interest accrual, and abatement strategies for late filers.
Key Steps
- 1Understand extension rules: October 15 filing deadline, April 15 payment deadline.
- 2Calculate failure-to-file penalty: 5% per month, max 25% of unpaid tax.
- 3Calculate failure-to-pay penalty: 0.5% per month, max 25% of unpaid tax.
- 4Track interest accrual: federal short-term rate + 3%, compounded daily.
- 5Request first-time abatement if clean 3-year compliance history.