(BPT) - The IRS projected that more people than ever before — 14.6 million — would file an extension. That estimate may have been conservative, given how tax reform influenced people to delay filing as they figured out what tax reform meant for them.
Now, those who still haven’t filed are running out of time, because the tax filing extension deadline is Oct. 15, 2019. Once Oct. 16 rolls around, those who still haven’t filed and owe the IRS will face a 5 percent monthly failure-to-file penalty on unpaid tax. The penalty adds up each month until the taxpayer files, up to a maximum of 25 percent. For those who did not file for an extension before the April deadline, the 5 percent monthly penalty kicked in immediately after the deadline.