1-800-548-4639If you missed the tax filing deadline, the best thing to do is file your return as soon as possible. Waiting longer can increase penalties and interest, especially if you owe taxes.
Even if you cannot afford to pay the full balance right now, filing late is usually much better than not filing at all. The IRS charges a higher penalty for failing to file than it does for failing to pay.
File your tax return as soon as possible
The first step is to file your return, even if the deadline has already passed. The sooner you file, the sooner you can stop or reduce the failure-to-file penalty.
The IRS failure-to-file penalty is typically 5% of the unpaid tax for each month, or part of a month, that the return is late, up to 25%.
By comparison, the failure-to-pay penalty is generally 0.5% of the unpaid tax per month, up to 25%.
Do not wait until you can pay
One of the biggest mistakes taxpayers make is waiting to file until they have enough money to pay the full balance. This can make the situation more expensive over time.
Filing your return helps reduce the larger penalty and gives you a clearer picture of what you owe. After that, you can explore payment options.
Pay what you can
If you owe taxes, paying something now can help reduce interest and penalties. You do not have to pay the full amount all at once to start improving the situation.
Once your return is filed, you may be able to request a payment plan or review other options for resolving the balance.
Not sure where to start with unfiled taxes?
If you’re dealing with back taxes or unfiled returns, getting clarity now can help you avoid additional penalties.
What if you are due a refund?
If you are owed a refund, you generally will not face a failure-to-file penalty. However, you should still file as soon as possible so you can claim your refund before the deadline to receive it expires.
Filing also helps keep your tax records current and prevents future complications.
Bottom line
If you missed the tax deadline, file as soon as possible. Filing late is usually much better than not filing, and acting quickly can help reduce penalties, limit interest, and give you more options to resolve any balance owed.
Michael is the Digital Marketing Manager at BC Tax, where he leads content strategy and digital initiatives focused on helping individuals better understand complex tax topics. He works closely with the Director of Digital Marketing and internal teams to develop clear, accurate, and practical educational resources covering areas such as unfiled tax returns, IRS penalties, and tax debt resolution. Michael graduated from the University of Colorado Boulder.
