Federal tax-extension deadline today; Here’s what you need to do if you missed it

economictimes.indiatimes.com:

late filing penalties, according to the International Revenue Services (IRS). However, some filers in disaster areas may have additional time.
Here’s what you need to know and do if you missed the deadline.

• Know IRS Late Penalties

If you miss the deadline, you could face two IRS penalties.

The first is the failure-to-file penalty, which amounts to 5% of unpaid taxes for each month or part of a month until you file your return, capped at 25%. In comparison, the second penalty is the failure-to-pay fee, which is 0.5% per month or partial month. Both penalties include interest. It's essential to file your return even if you can't pay your tax bill in full to avoid these penalties.

• Explore IRS Free File

Around 70% of taxpayers qualify for IRS Free File, but only 2% utilized it during the 2022 filing season, as reported by the National Taxpayer Advocate. To be eligible, you must have a 2022 adjusted gross income of $73,000 or less. However, Free File is only available through October 16 at 12 midnight ET, according to the IRS. It can be a great option for individuals with simple returns who don't require ongoing tax-planning advice and can benefit from the free service.

• Consider Funding SEP IRAs

For those who want to score a 2022 tax deduction before filing, Houston-based CFP Scott Bishop, managing director of Presidio Wealth Partners, as per CNBC report, suggested looking into simplified employee pension (SEP) individual retirement accounts (IRAs). While the deadline for most deductions has passed, self-employed, contract, or gig economy workers can still contribute to a SEP IRA. This not only helps your retirement plan but also provides a valuable tax deduction. You can establish a SEP IRA as late as your