Tax extension deadline 2025: Critical dates for crypto investors
Oct 9, 2025・5 min read
April 15 is the tax filing deadline everyone knows, but it’s not the only cutoff point. Millions of Americans choose to wait another six months before submitting their tax forms. As long as taxpayers get their extension requests to the IRS on time, they don’t have to worry about submitting their tax forms in the spring.
For crypto traders, this tax filing extension can be particularly beneficial. The extra time helps you avoid mistakes and spot deductions while combing through your transaction histories. But even though an extension can provide much-needed breathing room, it doesn’t mean you can delay your payments. And if you miss your tax extension deadline, you can still face significant fines and risk an audit.
In this guide, we’ll share what you need to know for tax season 2025. We’ll talk about the default deadlines, when and how to request an extension, and what mistakes you should look out for to avoid penalties.
When is tax season 2025: Essential IRS tax deadlines
In the United States tax season, filing and payments are due on April 15. However, individuals can easily extend this deadline to October 15. To do this, you just need to submit Form 4868 by April 15. After that, you’ll need to send in your completed tax forms by October 15 to avoid penalties.
Businesses can extend their tax filing deadlines as well. But they use Form 7004, and the new filing due dates are based on entity type and year-end. For example, Form 1120, filed by C Corporations, is due by April 15 for calendar year corporations, and can be extended to October 15. In contrast, Partnerships file Form 1065, which has a due date of March 15 (for calendar year partnerships) and a potential extension until September 15.
In all of these cases, if the due date falls on a weekend or federal holiday, it is generally moved to the next business day. For example, since March 15 fell on a Saturday in 2025, partnerships had until March 17 to file their income tax returns if they didn’t request extensions.
Understanding the difference between payment and filing deadlines
Just because you submit an application for a deadline extension by April 15 doesn’t mean you defer the deadline for paying tax liabilities. An extension only grants individuals or businesses more time to file their tax returns. If you owe taxes, the IRS expects payment on the original due date. If you don’t estimate, file, and pay your taxes before this initial deadline, you’ll face Failure to Pay penalties with interest.
For example, if you owe $4,000 on your tax forms but don’t pay this amount until October 15, you’ll pay extra in penalties and interest even if you have a valid extension. In 2025, the Failure to Pay percentage is 0.5% per month, with an annual interest rate of 7%. So in our example, you’d owe a total interest and penalties of $260.
How to get an extension on your taxes
The form for filing a tax extension is 4868 for individuals or 7004 for businesses. You simply have to fill out the correct form and send it in by your original tax deadline. You don’t need to worry about waiting for approval – as long as you file correctly, your extension will be automatically granted.
Traditionally, taxpayers sent paper copies of these forms to the IRS by mail. Although the IRS still accepts physical forms, it’s more convenient to use an official IRS e-filing partner or work with a CPA who files electronically. This avoids manual filing errors and provides quicker confirmation. If you pay your taxes through the IRS Direct Pay portal, there’s even a dedicated box you can select to file an extension without needing to complete a separate form.
Penalties for missing the tax extension deadline
Even if you have an extension, your Failure to File penalty for missing the new filing deadline of October 15 is the same you’d face for filing late without an extension. Under the current IRS rate, you’ll pay 5% of the tax due per month for each month the return is late, up to a maximum of 25%.
The IRS also charges underpayment interest based on a rate that they adjust each quarter. At the time of writing, the IRS interest rate is 7% for individuals.
In addition, there’s a Failure to Pay penalty for anyone who doesn’t pay their tax liabilities on the original due date. This penalty is a 0.5% fee on unpaid taxes each month with a cap of 25% of the unpaid taxes.
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What to know about state tax extension deadlines
All of the above only applies to federal tax returns and extensions. You’ll also need to know what state-specific tax laws apply to you or your business. Although many states mirror the IRS’s due dates, there are cases where certain policies and extra paperwork add complications.
For example, individuals in New York need to file Form IT-370 to get a six-month extension on filing their taxes. Other states have unique default and/or extension due dates, such as Delaware, where personal income tax was due on April 30 in 2025.
To figure out whether your local tax policies diverge from federal standards, you’ll need to consult your state’s Department of Revenue. You might also consider working with a CPA who has local experience. Either way, if relevant, don’t forget to look at each state you do business in.
File your crypto tax forms smarter with CoinTracker
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With our intuitive Portfolio Tracker, you can easily link your exchange APIs and self-custodial wallets, then see your historical transfers and real-time crypto net worth in one place. CoinTracker can also import this data to IRS-compliant forms like Form 8949 and Schedule D, so they’re ready to send to your CPA or enter into software like TurboTax and H&R Block.
Tax time is approaching – are you prepared? Let us simplify your crypto tax journey. Create a free CoinTracker account and let our platform handle the complexities.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
How do you file for a tax extension?
To file a tax extension, individuals use IRS Form 4868, while most businesses use IRS Form 7004. You have to submit these forms electronically or via mail by your original tax deadline.
When is the IRS tax extension deadline for the 2025 tax season?
For individuals, the deadline to request a tax extension is April 15, 2026. Once your request is approved, your new filing deadline is October 15. These dates vary for specific business types, and some states have policies that differ from the IRS’s standards.
Do I still need to pay if I file an extension?
Taxpayers still have to pay their estimated tax liabilities to the IRS on the original deadline. An extension only allows you to file your forms late – it doesn’t defer your payment date.
What’s the extended deadline for business tax returns?
The extended deadline for tax returns depends on your business’s entity classification with the IRS and the year-end. Calendar year C Corporations can get extensions until October 15, while calendar year Partnerships and S Corporations can extend to September 15. Federal holidays or weekends may alter these dates each year.
What happens if I miss the October 15 extended tax filing deadline?
Missing the October 15 extended deadline triggers a Failure to File penalty plus interest, which extends until the IRS receives your tax forms.
What happens if I file an extension and owe money?
Even if you have an extension, if you don’t pay your tax liabilities by April 15, you’ll owe a Failure to Pay penalty and interest on unpaid taxes. If you underpaid by a certain amount, you’ll owe the IRS an ongoing Underpayment of Estimated Tax by Individuals Penalty until the balance is fully paid.