The September 15 & October 15 Tax Extension Deadlines: Critical Info to Know
As summer winds down, two important tax deadlines are quickly approaching: September 15 and October 15. If you filed for an extension earlier this year, these dates are critical for avoiding unnecessary penalties and keeping your tax situation in good standing. Let’s break down what these deadlines mean, what extensions really cover, and how to plan better for next year.
What Each Deadline Means
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September 15, 2025 – Business Extension Deadline
This date applies to extended returns for partnerships (Form 1065), S-corporations (Form 1120-S), and certain trusts. If you filed an extension back in March, your business tax return is due now. -
October 15, 2025 – Individual Extension Deadline
This is the final deadline for individuals (Form 1040) who requested an extension in April. After October 15, the IRS will not accept late-filed returns without penalties.
What an Extension Actually Covers
There’s a common misconception about extensions. Here’s the truth:
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An extension gives you more time to file your return, not more time to pay your taxes.
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Any taxes owed were still due by the original deadline (March 15 for businesses, April 15 for individuals).
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If you didn’t pay enough by the original deadline, you may owe interest and penalties—even if you filed an extension.
Penalties for Missing the Extension Deadline
If you miss these extension deadlines, you could face:
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Failure-to-file penalty: Typically 5% of unpaid taxes per month (up to 25%).
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Failure-to-pay penalty: 0.5% of unpaid taxes per month.
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Interest charges: Compounded daily until the balance is paid.
These costs add up quickly—especially for business owners—so meeting the deadline is crucial.
Should You File an Extension Next Year?
Extensions can be a helpful tool, but they’re not always the right move. Consider:
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Good reasons to file an extension:
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Waiting on delayed documents (like K-1s or corrected 1099s).
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Needing more time for complex returns (multiple businesses, investments, etc.).
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Avoiding filing errors under tight deadlines.
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Reasons not to rely on extensions every year:
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Risk of forgetting and missing deadlines.
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Penalties and interest if you don’t estimate and pay on time.
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Less time for planning before year-end.
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The key is to treat extensions as a tool, not a habit.
Plan Ahead with Tax Strategy
Whether you’re a business owner or an individual filer, planning early can help you avoid the stress of extensions and last-minute filing. At Azalea City Tax & Accounting, we don’t just prepare returns—we help you design a strategy so tax time works in your favor.
📌 Tip: Start gathering documents and discussing tax planning with your advisor before year-end. That way, you can make proactive moves instead of scrambling in April or October.
Final Takeaway
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September 15 = Extended business returns due.
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October 15 = Extended individual returns due.
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Extensions delay filing, not payment.
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Missing deadlines can mean costly penalties.
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Planning ahead is the best way to stay in control of your taxes.
Ready to get ahead of the next tax season?
Contact Azalea City Tax & Accounting today!
251-380-6293
Mobile, Alabama
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