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Tax Extensions Don't Stop Interest - Clear Start Tax Breaks Down the Hidden Cost of Filing Late
Many taxpayers mistakenly believe an extension pauses IRS penalties and interest. Experts say that misunderstanding can quietly inflate tax bills by thousands.
IRVINE, CA / ACCESS Newswire / December 17, 2025 / As the annual tax deadline passes, millions of Americans who filed for an extension may be unaware that extra time to file does not mean extra time to pay. According to tax resolution specialists at Clear Start Tax, interest on unpaid balances continues to accrue from the original filing deadline - often catching taxpayers off guard months later when their balance is significantly higher than expected.
An IRS filing extension allows taxpayers to submit their return later in the year, typically by October, but it does not stop interest from accumulating on any unpaid taxes. In many cases, penalties may also apply, depending on how much was paid by the original deadline.
"Extensions are commonly misunderstood as a pause button," said a spokesperson for Clear Start Tax. "In reality, the IRS starts charging interest immediately on unpaid taxes, even if you've done everything 'right' by requesting an extension."
Clear Start Tax reports that taxpayers who underestimate their balance or delay payment often face compounding costs that can escalate quickly. Interest accrues daily, and even relatively modest balances can grow substantially over time.
"We regularly speak with people who are shocked when their tax bill increases by hundreds or even thousands of dollars," the spokesperson said. "They assumed filing later meant paying later, and that's simply not how the system works."
The firm advises taxpayers who need more time to file to still submit an estimated payment by the April deadline whenever possible. Even partial payments can significantly reduce interest and penalties.
"The IRS doesn't require perfection, but it does reward proactive effort," the Clear Start Tax spokesperson added. "Paying something is almost always better than paying nothing."
Tax professionals note that with enforcement efforts increasing, misunderstandings around extensions could lead to avoidable financial stress later in the year, especially for self-employed individuals, gig workers, and households with variable income.
By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.
About Clear Start Tax
Clear Start Tax is a national tax resolution firm that helps individuals and businesses navigate complex IRS matters, including back taxes, penalties, and collection actions. The company focuses on education-driven guidance and personalized strategies designed to help taxpayers regain financial stability and compliance.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
(888) 710-3533
Contact Information
Clear Start Tax
Corporate Communications Department
[email protected]
(949) 800-4011
SOURCE: Clear Start Tax
View the original press release on ACCESS Newswire
T.Wright--AT