US Tax Deadline Reminder

The U.S. April 15 tax deadline is unchanged for 2026, though filers can request extensions until October 15 — a move that delays refunds but not the due date for taxes owed. That timing matters for retirees managing distributions and RMD-like withdrawals. (economictimes.indiatimes.com) The IRS’s failure‑to‑pay penalty is 0.5% of unpaid tax for each month or part of a month the balance remains unpaid, capped at 25% of the unpaid tax. (irs.gov) (irs.gov) For the calendar quarter beginning April 1, 2026 the IRS set the underpayment interest rate for individuals at 6%, and the agency states interest on unpaid tax, penalties and interest compounds daily until the liability is paid in full. (irs.gov) (irs.gov) SECURE 2.0 reduced the excise tax for missed required minimum distributions from the prior 50% level to 25%, with a further reduction to 10% available if the missed RMD is corrected and reported within the statutory correction window. (irs.gov) (irs.gov) Most account owners must take RMDs by December 31 each year, while the single‑use first‑RMD rule allows a delay until April 1 of the year after reaching the applicable age — a deferral that produces two required withdrawals in the same calendar year if used. (irs.gov) (irs.gov) The IRS’s online payment agreement lets eligible taxpayers request installment plans through an Online Payment Agreement (simple plans generally for balances of $50,000 or less), and the agency’s long‑term options and direct‑debit requirements vary by balance and plan type. (irs.gov) (irs.gov) Tax safe‑harbor rules used to avoid underpayment penalties include paying at least 90% of the current‑year tax or 100% of the prior‑year tax (110% if prior‑year adjusted gross income exceeded $150,000), and the IRS treats withholding and estimated payments differently when applying those tests. (irs.gov) (irs.gov)