Life happens. Between juggling work, family, and everything else, it’s not uncommon to miss the tax filing deadline. If April 15 (or the adjusted IRS deadline) came and went and you didn’t get your return in, don’t panic—but don’t ignore it either. The longer you wait, the more serious (and expensive) the consequences can become.
Here’s what you need to know about what happens when you miss the tax filing deadline and what you should do next:
1. Late Filing Penalty If you owe taxes and didn't file on time, the IRS typically charges a late filing penalty—and it’s one of the costliest.
Amount: 5% of the unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%.
Minimum penalty: If your return is more than 60 days late, the minimum penalty is either $485 (as of 2023) or 100% of the tax owed, whichever is less.
Tip: File as soon as possible—even if you can’t pay right away—to reduce or avoid this penalty.
2. Late Payment Penalty If you filed but didn’t pay your full tax bill by the deadline, the IRS may charge a late payment penalty as well.
Amount: 0.5% of the unpaid taxes per month, up to 25% total.
This is in addition to the late filing penalty.
Tip: Paying as much as you can, as soon as you can, helps reduce this penalty and the interest that builds on top of it.
3. Interest Charges On top of the penalties, the IRS charges interest on unpaid taxes. This accrues daily and compounds until the balance is fully paid.
Rate: The interest rate is determined quarterly and is usually the federal short-term rate plus 3%.
Tip: Even small amounts of unpaid taxes can add up quickly with compounding interest—so again, early action is key.
4. If You're Due a Refund Good news: If the IRS owes you money, there’s no penalty for filing late. But there’s a catch.
You have three years from the original due date to claim your refund. After that, the money becomes the government's.
If you don’t file, you don’t get the refund—or any applicable tax credits (like the Earned Income Tax Credit or Child Tax Credit).
Tip: Even if you missed the deadline, it’s worth filing just to claim what you’re owed.
5. The IRS Might File for You (and That’s Not Good) If you don’t file for an extended period, the IRS may file a Substitute for Return (SFR) on your behalf. But don’t expect them to do you any favors.
The SFR won’t include deductions, credits, or anything that could lower your tax bill.
This often results in a higher tax liability than if you’d filed yourself.
Tip: You can still file your own return later and override the IRS's version—but the longer you wait, the harder it gets.
6. What You Should Do Next
If you missed the deadline, here’s what to do:
✅ File ASAP: Even a late return is better than no return. E-filing is still available for prior years, or you can file a paper return.
✅ Pay What You Can: Partial payments reduce penalties and interest.
✅ Set Up a Payment Plan: The IRS offers installment agreements if you can’t pay your full balance at once.
✅ Consider First-Time Penalty Abatement: If this is your first time missing a deadline, the IRS may waive penalties if you have a good compliance history.
✅ Talk to a Tax Professional: Especially if you owe a large amount or have multiple years of unfiled returns.