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Requested a late-filing tax extension? The deadline is looming closer
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Time is running out for the millions of Americans who requested a tax deadline extension earlier this year to file their 2020 income returns without a financial penalty.
The roughly 19 million taxpayers who asked for an extension earlier this year now face an Oct. 17 deadline to submit their returns. The IRS has repeatedly urged individuals to "avoid a last-minute rush to file" by submitting their returns electronically ahead of the October deadline.
Filing your taxes electronically is the fastest way to get a refund, according to the IRS, especially as the agency works its way through a backlog of paper returns.
Seeking an extension gives filers more time to thoroughly review their return and take advantage of all the tax benefits, like various deductions and credits, that are available to them to help them reduce their liability.
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And by pushing back the filing date, taxpayers can avoid a failure-to-file penalty – an extra 5% per month on the unpaid amount of money owed, which can add up to 25% of the tax due. If you file for an extension, you have until Oct. 17 before the penalty starts accruing.