Filing a tax extension allows you to extend your tax filing deadline, however, the IRS still expects you to pay any outstanding tax balance due by the tax filing deadline . Below is a brief explanation of the potential tax penalties and interest payments if you do not pay any outstanding balances by the tax filing deadline.
Late Payment Penalty
The Late payment penalty is usually 0.5% of the taxes not paid, per month.
Interest
Any outstanding balance due to the IRS is also subject to interest. The interest rate varies slightly, but is traditionally around 5% per year.
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