IRS Confirms: New Tax Extension Granted, But Only for Select States

The Internal Revenue Service (IRS) has advanced to the subsequent stage of the 2024/2025 tax period. Now that the tax filing deadline has passed, numerous taxpayers are poised to receive their refunds. Typically, those who missed filing their taxes by the deadline and did not request an extension face penalties including interest. However, certain individuals have had their filing deadlines extended beyond the typical April 15 cutoff.

Consequences of Missing the Tax Filing Deadline

If you didn’t meet last month’s deadline to file your taxes, the IRS advises you to file as quickly as possible to minimize penalties. Delaying your filing results in accumulating interest as a penalty for not filing on time. The sooner you file, the less severe the penalties may be, depending on your specific situation.

Often, people avoid filing their taxes because they can’t afford the federal tax due. The IRS emphasizes that you should file your return even if you can’t pay the full amount owed to avoid a ‘failure to file’ penalty.

This penalty is calculated as 5% of the unpaid taxes for each month the tax return is late, up to a maximum of 25%. If the filing is more than 60 days late, the minimum penalty is either a fixed amount or 100% of the unpaid tax, whichever is less. However, if you are due a refund, you might not be penalized.

Extended Deadlines in Certain States

Although many people might be receiving notices from the IRS about their overdue tax returns, residents in certain states have been granted an extension. According to the IRS, certain regions in twelve states that were affected by disasters had their filing deadlines extended to May 1. Some states have extensions that stretch into October and November of this year.

Even though the May 1 deadline has also passed, these states and their respective counties have extended deadlines until the end of this year:

• October 15, 2025, for Los Angeles County in California, due to the January 2025 wildfires
• November 3, 2025, for all of Kentucky and specific counties in West Virginia due to severe storms earlier in the year

This Year’s Average Tax Refund

For those who filed their taxes punctually, the average refund issued by the IRS stands at $2,945. If you haven’t received your refund but are expecting one, you can check the status using the IRS’s ‘Where’s My Refund?’ tool. Be aware, however, that your refund may be delayed if you have outstanding debts to the state or federal government.

Taxpayers aiming to reduce their tax burden for the 2025/26 fiscal year have several IRS-approved methods at their disposal. These include claiming capital losses if you own assets and making contributions to retirement accounts to lower taxable income. Remember, it’s crucial to file your taxes even if managing your tax liability seems challenging.