YORK, Pa. — Tax Day falls on April 18 due to the Internal Revenue Service moving federal holidays that fall on a Saturday or Sunday to the following Monday.
Tax Day is usually on April 15, but due to Emancipation Day—which is observed in Washington, D.C.—being celebrated on April 17, Tax Day was moved to April 18.
Tax Day is the deadline for people who received individual income to file for a return or make a tax payment. People who owe money to the IRS and don’t meet the deadline can be susceptible to penalties and interest on their payments. If an individual is receiving a return, there is no penalty; the government would just hold onto that money until they file.
According to the IRS, this is how the Failure to File Penalty is calculated:
The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.
If both a Failure to File and a Failure to Pay Penalty are applied in the same month, the Failure to File Penalty is reduced by the amount of the Failure to Pay Penalty for that month, for a combined penalty of 5% for each month or part of a month that your return was late.
If after 5 months you still haven't paid, the Failure to File Penalty will max out, but the Failure to Pay Penalty continues until the tax is paid, up to its maximum of 25% of the unpaid tax as of the due date.
If your return was over 60 days late, the minimum Failure to File Penalty is $435 (for tax returns required to be filed in 2020, 2021 and 2022) or 100% of the tax required to be shown on the return, whichever is less.
An extension can also be filed, but the deadline to file the income tax return is Oct. 16, 2023.