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Taxpayers in disaster areas get extra time to file federal taxes, but not to pay

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2 years ago

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Taxpayers in federally declared disaster areas in 25 states granted extended tax deadlines

About 19 million U.S. taxpayers requested an extension to file back in April, according to the IRS, giving them an extra six months to submit their 2023 federal income tax returns.

For many of those taxpayers, the October 15 final deadline is fast approaching.

Taxpayers in federally-declared disaster areas, which currently cover all or parts of 25 states and several U.S. territories, will have even more time.

Eligible taxpayers will receive an automatic extension to file their 2023 federal returns, with new deadlines ranging from November 1 to as late as May 1, 2025, depending on where they live. Check the IRS database to find out if you may qualify for an automatic federal extension, and reach out to your state about next steps for your state return.  

More from Your Money:

Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

From hurricanes to tornadoes and wildfires, these natural disasters occurred after the April 15 federal tax deadline, when tax returns and payments were due. So affected taxpayers who originally requested an extension will have more time to file, but not more time to pay, according to the IRS.

Penalties can add up

Ryan Creel takes a sewing machine from a pile of damaged belongings on October 4, 2024 in Camden, North Carolina. 

Melissa Sue Gerrits | Getty Images

For most taxpayers who requested an extension, but don’t file their return by October 15, the penalty for filing the return late is 5% of unpaid taxes per month or partial month, capped at 25%.

If you didn’t pay enough tax by April 15, the late payment penalty is 0.5% of your unpaid balance per month or partial month, up to 25%. You will also incur an interest-based penalty.

You won’t be penalized if you’re owed a refund. 

Taxpayers can avoid or limit penalties by filing for an extension, estimating what they owe and making payments toward that balance before April 15 and in subsequent months, experts say.

Then “there’s no failure-to-file penalty because they have an extension, or the underpayment penalty gets significantly reduced because they have had extra payments done throughout the year,” said certified public accountant Miklos Ringbauer, founder of MiklosCPA, an accounting and tax strategy firm in Los Angeles. 

If you can’t pay, consider an installment plan

Volunteers help residents to clean their homes covered in mud, following the passing of Hurricane Helene, in Swannanoa, North Carolina, U.S., October 07, 2024. 

Eduardo Munoz | Reuters

If you can’t pay what you owe right now, the IRS recommends applying to set up a payment plan.

A short-term payment plan gives you up to 180 days to pay if you owe $100,000 or less in tax, penalties and interest. A long-term payment plan lets you pay monthly if you owe less than $50,000.

However, the IRS expects you to pay as you go, so you’ll continue to incur interest on unpaid taxes on those installment plans. But the failure-to-file penalty is cut in half while an installment agreement is in effect, according to the IRS.

Start planning ahead

There isn’t much you can do at this point to change the outcome of what you owe for 2023, but now is a good time to start planning ahead. 

With provisions in the 2017 Tax Cuts and Jobs Act set to expire at the end of 2025 if Congress doesn’t take action, higher tax rates could be on the horizon.

“Maybe you want to accelerate some capital gains or do some income shifting strategies,” said Jim Buffington, a CPA and advisory services leader for Intuit Accountants. “Now would be the time to begin talking about those so that you can make arrangements before the end of 2024.”

Also, “consider adjusting your withholding or making estimated tax payments for this year so that you don’t get a surprise bill next April, and you won’t owe or will owe less of a penalty for underpayment,” said IRS spokesperson Eric Smith.

If you increase the tax withheld from your pay now, he said, the IRS “assumes you made payments equally throughout the year and that works to your favor when it comes to any estimated penalty that would apply.” 

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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7 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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