Did You File Taxes Late? Here's What You Need To Know
What happens if you file taxes late? For one thing, the IRS can charge you penalties and interest. But there are steps you can take after filing taxes late to minimize the damage. This includes penalty waivers, payment plans, reducing your tax liability, and more. And if the deadline hasn’t passed yet, you can request a tax filing extension if you need more time.
When a significant natural disaster hits – such as a hurricane, earthquake, tornado, flood, wildfire, blizzard, or the like – the IRS will extend upcoming federal tax deadlines for affected taxpayers if a federal disaster is declared. The extended due dates apply to most federal tax returns and payments, including those for income taxes (including estimated tax payments), payroll taxes, and excise taxes. If you’re impacted by a natural disaster, check our IRS Disaster Relief page to see if you qualify for an automatic tax filing or payment extension.
Key Takeaways
- The deadline for filing your federal income tax return is typically April 15 each year (or the next business day if April 15 falls on a weekend or holiday).
- If you miss the April 15 deadline, you might have to pay IRS penalties and interest on any unpaid taxes you owe.
- The IRS offers a few penalty relief programs and payment options – such as payment plans and an Offer in Compromise program – to manage or reduce the financial burden if you can't pay your tax bill right away.
- If you're expecting a refund, there are no penalties or interest charges for filing late. However, filing late will delay your refund and extend the statute of limitations for audits.
Many people will file taxes late in 2025
The due date for filing your federal income tax return is typically April 15 each year (unless that day falls on a weekend or holiday). But every year many people miss the deadline. They get sick, lose important tax documents, or have something else pop up that prevents them from filing on time.
If you know in advance that you aren’t going to be able to meet the April 15 deadline, you can request an automatic six-month tax return filing extension. But you have to submit your request by the April 15 deadline.
So, what happens if you don’t file your return or request an extension by April 15? And what can you do to minimize the consequences of filing late? Read on for answers to these questions and more.
What happens if you file taxes late: penalties and interest
You might have to pay IRS penalties and interest if you file your federal income tax return after the April deadline, your due date isn’t extended, and you end up with a tax bill.
First, the IRS charges a 5% penalty per month on any tax due if your return is filed late. The penalty is capped at 25% of the tax owed. If the return is more than 60 days late, the minimum late-filing penalty for returns due in 2025 is $510 or 100% of the tax owed, whichever is less.
There’s also a separate IRS penalty for paying your taxes late. This penalty is 0.5% per month on any unpaid taxes. The rate jumps to 1% per month if you don’t pay within 10 days after getting an IRS notice to pay. As with the late-filing penalty, the penalty is limited to 25% of any unpaid tax.
If both penalties apply in the same month, the 5% penalty for filing late is reduced by the amount of the 0.5% penalty for paying late. So, for example, the IRS would charge a 4.5% late-filing penalty and a 0.5% late-payment penalty in that situation.
In addition to any penalties, the IRS charges interest on unpaid taxes (rates can be adjusted every three months). Interest generally starts accumulating as soon as the filing deadline passes and continues to accrue until your taxes are paid in full. The IRS charges interest on penalties, too.
If you don’t owe any tax and are getting a tax refund instead, you don’t have to worry about penalties and interest.
TurboTax Tip:
You might not be required to file a tax return at all if your income is below a certain amount. For most people, you don’t have to file a return if your gross income is below your Standard Deduction for the tax year. However, even if you're not required to file a return, you should file anyway if you can get a tax refund.
Steps to take if you missed the deadline
So, what should you do if you missed the April 15 deadline and didn’t request a six-month filing extension? Here are three steps you can take to put yourself in a better position.
Step 1 – Check to see if an extension applies. Even if you didn’t request a six-month filing extension, you still might have more time to file. For instance, the IRS typically provides both tax filing and payment extensions for taxpayers impacted by a federally declared natural disaster. Extensions may also be available for:
- military personnel
- expats
- people affected by terrorist activity in Israel in 2023 and 2024
If you have more time, do your best to file before the extended deadline to avoid penalties and interest.
Step 2 – File your tax return and pay your taxes. If no extension applies, file your return as soon as possible. If you owe the IRS, this will stop additional penalties and interest from being tacked on to your tax bill.
If you can’t pay the full amount, pay what you can now. While this won’t prevent the IRS from charging more penalties and interest, it will slow down the amount being added to your bill each month. You should also consider setting up a payment plan with the IRS or other ways to pay your taxes over time (a few options are discussed below).
Even if you don’t owe the IRS any money, you should still file your return quickly. If you’re supposed to receive a refund, you won’t get it until you file.
Step 3 – Seek waiver of penalties and interest. If you qualify, the IRS can waive penalties for filing your return or paying taxes late in some cases. For instance, if you filed your return and paid your taxes on time for the previous three years, you might qualify for penalty relief through the IRS’s First-Time Abatement program.
The IRS can also waive any penalties if there was “reasonable cause” for filing or paying late. This type of penalty relief might be available if you were prevented from filing or paying on time because of a fire, natural disaster, serious illness, death of a family member, or similar unavoidable situation.
Interest on unpaid taxes generally can’t be waived. However, the IRS won’t charge interest on a penalty if the penalty itself is waived.
How to pay your taxes
Paying any tax you owe is key to stopping the accrual of additional penalties and interest if you miss the April 15 filing deadline. Fortunately, the IRS offers several ways to pay, including the following popular options.
Electronic funds withdrawal. If you’re e-filing your return using tax software like TurboTax, you can authorize an electronic funds withdrawal from your bank account to make a tax payment at the same time. The IRS won’t charge you a fee, but your bank might in some cases.
Direct Pay. You can also make a tax payment directly from your bank account through the IRS website using Direct Pay. You can do this at any time, and there’s no fee for using this payment method.
Credit or debit card. You can pay your taxes with a credit or debit card online or by phone through an IRS-authorized payment processor. The payment processor will charge you a fee (either a flat fee or a percentage of the payment amount).
Digital wallet. An authorized payment processor can also accept tax payments through certain digital wallets, such as PayPal, Venmo, and Click to Pay. Again, you’ll have to pay a fee with this option.
Check or money order. Alternatively, you can mail a check or money order to the IRS. The mailing address depends on the state you live in and whether you’re sending a payment with a tax return or by itself. There’s no fee for this payment method.
Cash. Don’t mail cash to the IRS. However, you can make cash tax payments through an authorized payment processor or a retailer that partners with the IRS to accept cash payments. Processing fees apply.
What if I can’t pay my taxes?
What if you simply don’t have the money at the moment to pay your tax bill? Don’t panic – but don’t ignore the problem, either.
Everyone’s situation is different, so consider what works best for you. For instance, some people take out a loan to pay the taxes they owe. If the interest rate is low enough, this could be less expensive than paying the IRS penalties and interest. Other people sell some property and use the proceeds to pay the IRS.
However, if you can’t get the money yourself, check out the following IRS programs that allow taxpayers to pay over time, pay later, or pay a reduced amount.
Payment plans. The IRS offers both short-term (pay within six months) and long-term (pay within six years) tax payment plans. You may be able to apply for a payment plan online if you owe:
- $50,000 or less in combined tax, penalties, and interest for a long-term plan
- $100,000 or less in combined tax, penalties, and interest for a short-term plan
Otherwise, you’ll have to submit Form 9465. You typically have to pay a fee to apply for a long-term payment plan using Form 9465.
Once you’re on a payment plan, the IRS will continue to tack on penalties and interest until your taxes are paid.
Offer in compromise. You might be able to reduce your tax bill through the IRS’s Offer in Compromise (OIC) program. Here’s how it works: You propose an amount that you can pay. If the IRS determines that you can't pay what you owe without creating a financial hardship, it can accept your offer and settle your tax debt for less than the full amount.
Most people must file Forms 656 and 433-A, and pay a fee, to apply for an OIC.
If your OIC is accepted, you can pay the amount you offered with either a lump-sum payment within five months, or up to 24 monthly payments. The IRS won’t add penalties and interest to the agreed-upon amount as long as you pay what you’re supposed to under the agreement. However, if you break the agreement, you’ll owe penalties and interest on the amount you owe.
Payment extension. If you can show that paying your tax bill on time would cause “undue hardship,” the IRS might give you more time to pay your taxes. Tax payment extensions are generally limited to six months.
According to the IRS, you won’t get an extension if paying your taxes on time is merely an “inconvenience.” Instead, you must convince the IRS that you’ll suffer a “substantial financial loss,” such as having to sell property at a discounted price, by paying on time.
File Form 1127 to request a payment extension. You must include a detailed explanation of the undue hardship that will result from paying your taxes, and attach supporting documentation.
If an extension is granted, the late-payment penalty won’t apply during the extension period. However, interest will continue to accrue until your tax bill is paid in full.
Delay collection activities. You can ask the IRS to temporarily suspend collection activities against you if you can’t pay any of the taxes you owe. Your tax debt won’t be eliminated or reduced, but the IRS won’t try to collect it until your financial situation improves.
You can call the IRS at the main phone number for individual taxpayers or the phone number shown on your tax bill to request a collection delay. The IRS may ask you to complete Form 433-A or Form 433-F and provide proof of your financial situation.
If collection activities are temporarily halted, the IRS will again review your ability to pay during the delay. Penalties and interest will also continue to accrue until your taxes are paid.
How does filing taxes late affect my refund?
If you’re getting a tax refund, you don’t have to worry about penalties for filing or paying late. Ditto for interest. That’s because these penalties and interest are based on the amount of tax you owe – and if you’re due a refund, you don’t owe the IRS anything.
But even though you won’t have to pay penalties and interest, you should file your tax return on time – or as soon as you can after the April 15 deadline.
First of all, you can't get your refund until you file. So, the sooner you file, the sooner you’ll get your money back.
The statute of limitations for an IRS audit also won't start until you actually file your return. So, the sooner you file, the sooner the clock starts ticking.
In addition, failing to file a return might trigger non-tax problems, too. For example, you might have trouble getting a mortgage, student loan, or car loan approved if you don't file your return. That’s because lenders often require copies of your tax returns when you apply for a loan.
Is there a way to file taxes late without penalties? (Hint: Request a filing extension)
As noted earlier, you can file your federal income tax return after the April 15 deadline without having to pay a late-filing penalty if you ask for an automatic six-month extension (typically to October 15). However, you must request the extension no later than April 15 (or whatever date returns are due that year).
There are a few ways to get an extension from the IRS. For instance, you can:
- use the TurboTax Easy Extension tool
- file Form 4868 (either electronically or with a paper form)
- make an electronic tax payment (make sure you indicate that it’s for a filing extension)
However, it’s important to remember that this type of extension only pushes back the due date for filing your tax return – it doesn’t give you more time to pay your taxes.
As a result, if you request an extension, estimate how much tax you’ll owe when you do file your return, and then pay that amount by the April 15 deadline. Otherwise, you’ll owe late-payment penalties and interest on the taxes you owe until your tax bill is paid in full.
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