The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023.
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Monday is the last day to file federal and Indiana tax returns for 2023.
The IRS expects expects more than 128.7 million federal tax returns to be filed by the April 15 tax deadline. Here’s what Johnson County residents who haven’t filed yet should know.
Failing to file
If someone fails to file their federal tax return on time, the standard penalty is 5% of any tax due for every month the return is late, up to 25% of the unpaid balance. If a return is filed but the person doesn’t pay any taxes they owe, or if they get an extension, they typically face a much smaller monthly penalty of 0.5% of any unpaid amount.
Need more time?
Taxpayers can request an extension, but shouldn’t wait until the last minute if possible. Extensions do not buy people more time to pay taxes as they’ll still have to pay any amount due to avoid penalties, but they’ll receive more time to complete tax forms.
If an extension is requested with the IRS, taxpayers will have until Oct. 15 to file the return. If an extension is needed to file state returns with the Indiana Department of Revenue, after the request has been submitted, taxpayers have until Nov. 15 to file their documents and pay any outstanding balance due.
If a Hoosier gets a federal extensions, they automatically get a state extension, according to Indiana DOR.
There’s not a penalty for filing a tax extension with the IRS, but not paying the full amount owed can lead to charges on the unpaid balance. As for Indiana, interest will be added to any amount owed after April 15, but the penalty can be waived if two conditions are met:
- Pay at least 90% of the tax expected to be owed by the original due date, and
- The remaining balance due — including interest — is paid in full no later than Nov. 15.
To request a federal extension, go to irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return.
To request an Indiana extension, go to intime.dor.in.gov. After a taxpayer provides their information, they’ll receive step-by-step instructions on filling out Form IT-9, which grants them the extension, according to Indiana DOR.
