Tax Filing Deadline Approaching

For those still working on their income taxes, you have just one week until the April 15 deadline. Alternatively, you can opt for a six-month automatic extension, which means your taxes would be due in 2025.

Here are some last-minute tips on what to do and what to avoid, especially if something goes wrong along the way.

Both the IRS and tax professionals are increasingly using AI for tax preparation, so it’s natural to wonder, “Why not me?”

However, former IRS Commissioner Danny Wuerffel points out some important reasons to proceed with caution.

Wuerffel, who previously oversaw the initial uses of AI at the IRS, believes there’s significant potential for this technology in tax-related tasks. But he sounds a cautionary note for those considering relying solely on generic AI platforms for their tax inquiries.

“Be cautious about using generic solutions,” Wuerfel advises, now a member of the strategic advisory board at a consulting firm.

One key point is that these general AI platforms—think Chat GPT, Google Gemini, or Microsoft Copilot—aren’t tailored for tax issues. They haven’t been specifically trained or rigorously tested to ensure compliance with tax laws, especially with the complexities that arose last July due to new tax breaks. Even tax professionals need time to fully understand these new rules.

The quality of information you get from a generic platform can also really depend on how you phrase your questions. If you’re unsure about what to ask—and it’s understandable if you are—you might get responses that are confusing or even inaccurate. Tom Oseven, a registered agent, commented, “I use AI tools regularly, but I’m mindful of our goals.”

Another concern is security; the personal financial data you enter might not be secure. “You’re essentially giving sensitive information to a platform that doesn’t fully understand how your data will be used,” Wuerfel noted.

Moreover, returns that are aided by AI could be flagged for further review by processing systems, leading to delays in your refund or other issues with the tax authorities.

“If you think, ‘I’ll just rely on Chat GPT,’ you risk being put in the slow lane,” Wuerfel added.

For assistance, consider checking the IRS Interactive Tax Assistant.

If you’re low-income and over 60, you can access free tax assistance through the Volunteer Income Tax Assistance (VITA) program by calling 800-906-9887. There’s also help available from AARP.

For military members, free assistance with tax questions can be obtained through Miltax.

Avoiding Unnecessary Penalties and Interest

If you owe money to the IRS in 2025 and don’t expect to file by April 15, here are some ways to minimize potential penalties.

You can submit Form 4868 to get an automatic extension until October 15 without facing penalties.

Make sure to submit this form by April 15 and pay what you owe— or as much as you can—by the same date.

If you haven’t requested an extension and still owe: Late filings can result in penalties up to 25%, which amounts to 5% of your unpaid balance for each month it is late. According to the IRS, if a return is filed over 60 days past the deadline, the minimum penalty could either be $525 (adjusted for inflation) or the total tax owed at filing.

Additionally, you may face a late payment penalty of half a percent on the unpaid tax, which can go up to 25%. (For more details on penalties and interest, you can refer to Page 2 of Form 4868.)

Furthermore, you’ll accrue interest on your balance until it’s fully paid, plus interest on any penalty charges that may still remain.

If you sought an extension but didn’t pay your balance by April 15: Although you won’t face late filing penalties, you will still be liable for interest on the unpaid balance, and other penalties may apply.

Before you file, it’s vital to double-check your calculations and proofread your return—especially your Social Security number and Tax ID. Don’t forget to include any information required from third-party forms you receive, like W-2s or 1099s.

Any inadvertent mistakes can delay the processing of your return and the arrival of your refund.

If you expect a refund and wish to see it quickly—typically within 21 days of filing—provide your direct deposit information on your return, be it a bank account, retirement fund, prepaid card, or mobile payment app.

You can even split your refund among up to three accounts by completing Form 8888.

The National Association of Tax Professionals notes that if you don’t provide deposit details, expect a letter from the IRS requesting this information within 30 days of processing your return.

If you’re opting for a paper check instead, NATP states that the letter will include instructions regarding exceptions and a dedicated phone line for managing this request. A paper check will be issued after six weeks to avoid any accrued interest on your refund.

Generally, filing your tax return on paper tends to be less efficient than electronic submissions. However, if you still prefer to mail your documents, remember that timelines have shifted. The USPS advises that for postmarking on April 15, you should take your mail to a retail post office and request a manual postmark. This service is free of charge.

If you need proof of the mailing date, consider using certified or registered mail.