Question

What consequences may occur if you receive an extension on your tax return?

A) You have until October 15 to file your return.

B) You may be required to pay interest if you owe the government money.

C) You may be subject to a penalty.

D) All of the above

Answer 1

Receiving an extension on a tax return extends the filing deadline to October 15, but interest and penalties may apply if taxes owed are not paid by the original due date.

Step-by-step explanation:

When you receive an extension on your tax return, you may indeed have until October 15 to file your return, but there are potential financial consequences to consider. If you owe the government money and pay after the April deadline, you may be required to pay interest on the unpaid tax amount until it is fully paid. Additionally, even with an extension, failing to pay the taxes you owe by the original due date could result in a penalty. Therefore, even though an extension provides more time to file your tax paperwork, it does not extend the time to pay any taxes owed without incurring extra costs.