Here’s What You Need to Know if You’re Filing Your Taxes Late This Year

Filing taxes late can feel stressful, even when you asked for an extension.

The deadline to request a tax filing extension is Tax Day, which typically falls on April 15, each year. That gives you until Oct. 15 of that same year to submit your forms how you normally would. Hopefully, you knew that an extension doesn’t apply to any payments you owe the government. You need to pay taxes you owe by April 15 each year — even when you’ve secured an extension.

Whether you asked for an extension or let taxes get away from you this year, we’ve explained what filing taxes late may mean for you. 

What To Know About Filing Taxes Late

Find out more about filing taxes late, what to expect from your tax return and how to make next year’s tax season a bit more stress-free (and on time). 

1.Tax Extension Deadline

Each year, you have until Tax Day — typically April 15 — to request a tax extension. With an extension, you would then have until Oct. 15 to file your taxes. This exempts you from a late-file penalty.

However, payments to the IRS were still due by April 15. This is where things can get a little tricky. Ideally, you’ll know roughly how much you owe to the government, even without filing on time. You can submit your payment to the IRS (but not your tax forms) by April 15 each year. 

If you filed for an extension and knew you were getting a tax return, all you need to focus on is submitting your tax forms by Oct. 15.

When you don’t know how much you owe, the IRS advises making an “educated guess,” and still submitting a payment by tax day. If you happen to pay 90% of what you do owe, it won’t charge a late-payment penalty. 

When you underpay, you owe a penalty and interest. If you over pay, you’ll get a return.

2. Failure-to-File Penalty

The first penalty to keep in mind is the failure-to-file penalty. This penalty gets triggered on April 16 if you don’t file and don’t have an extension. 

According to the IRS’s website, the failure-to-file penalty, or late-file penalty is “five percent of the unpaid taxes for each month or part of a month that a tax return is late.” However, the total penalty “will not exceed 25 percent of your unpaid taxes.”

If you file more than 60 days late, the minimum penalty will be 100% of your taxes owed, OR $485. Whichever number is smaller.

3. Failure-to-Pay Penalty

On top of the failure-to-file penalty, the IRS can implement a failure-to-pay penalty. This penalty is “one-half of 1 percent of your unpaid taxes.” This fee accrues each month until you’ve made your payment. Remember — owed tax payments are due by April 15 each year, even if you have an extension to file.

4. Failure-to-Pay and Failure-to-File 

For some reason (perhaps good will?), if you are met with both of these penalties at the same time, the maximum the government will charge you is 5% of your unpaid taxes per month. 

5. Penalty Relief and Disputes

If you feel like you’ve been penalized without cause or want to ask for an appeal, the IRS gives you the option to call its office or write (and mail in) a signed letter detailing why you think you should be excused. As long as you’ve had good standing with the IRS, there’s a good chance you’ll get a discount from your tax penalties.

If you couldn’t pay or file because of “circumstances out of your control,” you may qualify for tax penalty relief. Contact the agency for assistance.

6. Tax Return Deadline for Late Filing

Keep in mind that you only have three years to claim a tax return when you’re filing taxes late. For example, if you failed to file in 2022, you have until 2025 to file late and still claim your tax return. After the three year mark, you forfeit the money to the IRS.

7. Interest on Unpaid Taxes

Another important factor to be aware of is that the IRS charges interest on unpaid taxes and penalties. The amount of interest changes quarterly, but in 2024 the rate for underpayment in the first two quarters is 8%. Interest begins accruing the day after tax day and continues until your balance has been paid in full. 

8. How to File Back Taxes

If you’re ready to begin filing taxes late, you can do so through the IRS’s Free File website. This site connects you to a partnered service based on your income bracket (up to $79,000 adjusted gross income). Federal filing is always free, but these partnered programs may charge for state tax filing.

If you made more than $79,000 AGI, you can use a paid service or print a prior year tax form to fill out and mail to the IRS. 

Note: When filing back taxes, make sure to use the form from the year you missed, not the current year’s form. 

9. How to Avoid Being Late in the Future

Filing taxes late without an extension can rack up several penalties. Now that you know tax day falls on April 15 each year (unless delayed by a weekend or government holiday), this deadline shouldn’t come as a surprise to anyone. 

• Start the Process Early

The best way to stay on top of your taxes is to start the filing process as soon as you receive all applicable tax forms. If you’re self-employed, you can begin filling out your own tax forms at the beginning of each calendar year.

• Be Aware of Which Tax Forms You Need

If you’re employed, find out which tax forms you’ll need to fill out or receive by April. Form 1040 is the standard individual income tax return form most people are required to file each year. 

You may also need access to a 1099 form, W-4 (withholdings), or W-2 from your employer. When you know what to expect, it makes filing on time much easier.

• Set Aside Money to Pay Taxes

For self-employed people or those with minimal withholdings, you should consider setting money aside each quarter to pay the IRS in April. You can also make payments throughout the year on the IRS website if you’d rather not be tempted by extra funds. 

• Get Help from a Tax Expert

Hiring a CPA or qualified tax professional to help you with your taxes can sometimes be well worth the money. 

Rather than agonizing over every detail during tax season, you can work with someone who understands the process fully and can help you maximize your deductions. 

Final Word on Filing Taxes Late

If you’re filing taxes late without an extension, the most important thing you can do is file and make any related payments ASAP. If you did file for an extension and the IRS accepted it, have everything taken care of by Oct. 15.