What Happens If You File Your Taxes Late?

Missing the tax deadline can lead to penalties and interest. The IRS charges a failure-to-file penalty of 5% of unpaid taxes per month (up to 25%), plus interest. Filing late is usually worse than filing on time and setting up a payment plan.

The Failure-to-File Penalty

If you don't file by the deadline, the IRS imposes a penalty of 5% of the amount you owe for each month or part of a month you're late. This penalty caps at 25%. If you file more than 60 days late, the minimum penalty is $485 or 100% of the tax owed, whichever is less.

Filing vs. Paying

It's important to file on time even if you can't pay. The failure-to-pay penalty is only 0.5% per month. So filing on time and requesting an installment agreement or other relief is often the smarter move.

This is general information. For your specific situation, consult a licensed tax professional.