IRS Reminds Taxpayers Of June 16 Payment Deadline, And The Penalties

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

Estimated tax payments for the second quarter of 2025 are due on Monday, June 16, with taxpayers who fail to pay on time facing underpayment penalties, the Internal Revenue Service (IRS) said in a June 6 statement.

Taxes have to be paid throughout the year on a pay-as-you-go schedule. One way to do this is by withholding taxes from wages, pensions, or government benefits such as social security. The second way is to make estimated tax payments on a quarterly basis.

“Taxpayers that receive income not subject to withholding, such as income from self-employment, gig work, interest, dividends, capital gains, rent, or 1099 earnings, may need to make estimated tax payments throughout the year,” said the agency. “This includes freelancers, retirees, investors, businesses, and corporations.”

Estimated taxes are applicable to taxpayers such as sole proprietors, partners, and S corporation shareholders who expect to have tax liabilities of at least $1,000 in a tax year. For corporations, taxes are applicable if they expect to owe at least $500.

Among individuals, estimated tax payments must be made by people earning money through gig work, sale of goods and services, or freelance work.

Individuals whose incomes are being withheld may also be required to make the quarterly estimated tax payment if sufficient taxes are not being withheld from their wages. To prevent this situation, employed individuals can ask employers to withhold a larger amount from their income.

“Paying on time helps taxpayers avoid falling behind on their taxes and possible underpayment penalties,” the agency said.

The IRS calculates penalties after taking into consideration factors such as the amount of tax underpayment and when the tax was originally due. The agency also charges interest on penalties.

In some cases, the agency may offer to remove or reduce the penalty in cases where the tax underpayment “is the result of a casualty, local disaster, or other unusual circumstance when it would not be fair to impose the penalty,” the IRS said.

Another June Deadline

June 16 is also the due date for taxpayers living and working abroad to file and pay their 2024 taxes.

“U.S. citizens or resident aliens residing overseas or in the military on duty outside the U.S. are allowed a two-month extension to file from the normal April 15 deadline. Since June 15 falls on a Sunday in 2025, the deadline is delayed to Monday, June 16,” the IRS said in a May 22 statement.

In case taxpayers are unable to file returns by June 16, they can request an extension to postpone the filing deadline to Oct. 15.

However, “an extension of time to file is not an extension to pay,” the agency clarified. “Interest will apply to any 2024 tax payments received after April 15, 2025.”

The IRS collected a record $5.1 trillion in revenues for fiscal year 2024, the first time revenues exceeded the $5 trillion mark. This was a roughly 9 percent increase over the revenues collected for the 2023 fiscal year.

The agency processed over 266 million returns and other forms in the last fiscal year and issued nearly $553 billion in refunds.

Meanwhile, the agency is undergoing a leadership change, with the Senate Finance Committee voting in favor of President Donald Trump’s IRS head nominee Billy Long, on June 3. With that vote, Long advances to a full Senate vote.

Sen. Mike Crapo (R-Idaho), the committee chair, has said that if Long is selected to be the IRS head, he will work with him to “ensure the IRS focuses on helping American taxpayers to better understand and meet their tax responsibilities, and that it enforces the tax law with integrity and fairness to all.”

Long has faced opposition from Democrats, who have accused him of lacking direct experience with tax policy.

During his testimony before the Senate Finance Committee on May 20, Long vowed to correct many of the issues plaguing the IRS, including taxpayer complaints of poor customer service and delayed refunds.