Interest also builds up daily, equal to the federal short-term rate, plus 3%.
Taxpayers have the option to file for an extension, which will give them an extra five months to get their returns in by October 15. But they'll rack up 0.5% in penalties each month unless they pay an estimated amount by May 17. The IRS offers a Free File tool for all taxpayers on its website, though only those earning $72,000 or less receive access to the more comprehensive version of the service.
Some Americans will receive automatic extensions, including those affected by the winter storms that hit Texas, Oklahoma and Louisiana in February 2021. Residents of those states have until June 15, 2021 to file their taxes.