Tax Extension Tips: Filing a Tax Extension Is Step One. Here’s What Smart Taxpayers Do Next.
If you filed a tax extension in 2025—whether for your business or as an individual—you’re not alone. The IRS receives millions of extension requests each year. Requesting a tax extension is typically done by submitting Form 4868 to the IRS.
But the final tax extension deadline is closer than it seems, and this additional time—these extra months granted by the extension—is your opportunity to reduce penalties, uncover deductions, and file with confidence. Keep in mind, this additional time is for filing your return, not for paying taxes owed. Requesting an extension can help you avoid penalty and fees for late filing, but interest may still apply to any unpaid taxes.
Why File a Tax Extension?
Common reasons taxpayers request an IRS extension include:
- Waiting on K-1s, 1099s, or complex investment data
- Incomplete bookkeeping or records
- Significant life events: moving, starting a business, divorce
- Managing payroll or accounting for a multi-state business
- Missing documents or major life events that make it difficult to meet the original due date for tax filing
The tax deadline (the original due date) is typically April 15. The filing deadline for extensions is later, but any tax payments are still due by the original deadline.
A tax extension gives you time to file—but not time to pay. Interest applies to any unpaid tax after the original due date, so paying as much as possible by the deadline can help minimize penalties.
3 Things to Do After Filing Your Tax Extension
How to Check the Status of Your Tax Extension
After submitting your tax extension, it’s important to confirm that your extension request has been received and processed by the Internal Revenue Service. If you used DIY tax software log in to confirm receipt of your extension filing. For those who mailed their extension form, you can call the IRS directly to verify your extension status.
To make the process smoother, have the following details ready:
- Your name and Social Security number or ITIN
- The tax year and type of tax return (individual or business)
- The date you filed your extension request
- The method you used to file (e-file or mail)
Keeping a record of your extension request—including the date and method of submission—can help you quickly resolve any issues and ensure you have the extra time to file your tax return. Verifying your tax extension status helps you avoid possible penalties and gives you peace of mind as you prepare your return.
Don’t Forget Estimated Tax Payments
Filing a tax extension gives you more time to file your tax return, but it doesn’t delay your responsibility to pay taxes owed. If you’re self-employed or have income not subject to withholding, you must make estimated tax payments throughout the year to avoid penalties and interest on your federal tax liability.
Estimated tax payments are typically due on:
- April 15 (first quarter)
- June 15 (second quarter)
- September 15 (third quarter)
- January 15 of the following year (fourth quarter)
To determine how much tax you need to pay each quarter, use Form 1040-ES:
- Estimate your total tax liability for the year.
- Subtract your expected withholding and credits.
- Divide the remaining amount into quarterly payments.
You can pay your estimated taxes online, by phone, or by mail using the Electronic Federal Tax Payment System (EFTPS). Always keep detailed records of your payments, including dates and amounts, to ensure you’re meeting your tax obligations and to help avoid penalties and interest on unpaid taxes.
1. Work With a CPA Who Specializes in Tax Extensions
A CPA familiar with income tax extension and tax return extension processes can help ensure your extension is properly granted and that you meet all requirements. They can also help you find last-minute tax credits and avoid red flags. If your current CPA just ‘plugs in numbers,’ it might be time to switch.
Working with a tax professional can also help you uncover education credits, energy-efficient home deductions, and other benefits tied to the latest IRS updates. These opportunities are often overlooked when rushing to file after an extension.
2. Clean Up Bookkeeping or Payroll Records
Late or inconsistent records can lead to mistakes. Especially for business owners, now’s the time to catch up—before filing season hits full swing. Reviewing your records helps ensure all taxes have been paid and can help you identify any discrepancies before filing.
3. Reduce Tax Liability With Strategic Planning
Your CPA can help you reduce your tax bill by identifying additional deductions, such as student loan interest, as well as through retirement contributions, amended filings, or updated depreciation schedules.
Common Mistakes to Avoid After Filing a Tax Extension
- Assuming no penalties apply
- Waiting until the last minute to organize documents
- Relying on outdated numbers from your bookkeeping system
- Not getting a second opinion when unsure about your tax return
- Failing to file a federal extension for your federal taxes, which can result in missed deadlines and additional penalties if you do not meet the requirements for a filing extension
- Another common oversight? Failing to plan for state tax obligations. Many states have separate extension requirements and deadlines that differ from federal rules. If you do business in multiple states or moved recently, double-check each state’s rules—or consult a CPA who specializes in multi-state returns.
For example, many people mistakenly believe there is a cost to filing an extension, when in fact, obtaining a federal extension or a filing extension is often free.
Should You Switch CPAs After Filing an Extension?
Many taxpayers hesitate to switch CPAs during the tax season—but if you’re not confident in the guidance you’re getting, now is the perfect time to reassess. If you are requesting a review of your extension, or have questions about your state income tax deadline, a new CPA can help guide you through the process and ensure you meet all requirements.
At Cook CPA Group, we offer consultations for taxpayers who’ve extended. We’ll help you:
- Evaluate risk of penalties or audits
- Review past filings for missed opportunities
- Get back on track with proactive guidance
Final IRS Tax Extension Deadline for 2025
Mark your calendar: The IRS final extension deadline for individual and most business returns is September/October 15, 2025. The standard IRS extension grants six months, but some taxpayers living in another country or serving in a combat zone may receive an automatic two month extension or two extra months to file. Don’t wait until August to get strategic.
Expert Support—Not Just Generic Resources
While online resources offer generic advice, real tax savings come from personalized strategy.
At Cook CPA Group, we work with individuals and business owners to:
- Avoid unnecessary penalties
- Maximize last-minute deductions
- File accurately and confidently before the IRS deadline
Additional helpful topics include:
- State income tax deadlines and how to file a state tax extension
- Automatic extensions for military personnel and taxpayers living abroad
- Tips to avoid penalties and interest on unpaid taxes
By using these resources and staying informed about tax law changes, you can maximize your deductions, minimize your tax liability, and ensure a smooth tax extension process. Stay organized, keep accurate records, and don’t hesitate to seek professional help if you have questions about your extension or tax return.
What Happens If You Miss the Final Deadline?
If you don’t file your return by October 15, 2025 (or your applicable extended deadline), the IRS can assess failure-to-file penalties of up to 25% of your unpaid taxes. This penalty stacks with interest and late payment fees. Even if you can’t pay the full amount owed, filing on time helps you avoid the largest penalties.
Ready to Get Help Before the Final Deadline?
We offer no-pressure reviews for extended returns. Whether you’re filing late or considering a new CPA, let’s talk strategy before the IRS closes the door.