Riley Tax Credit

Follow Us :

What Happens If You Don’t File Taxes, or File Taxes Late?

That’s why taxpayers who need more time to file their returns are urged to request an extension. Affording your tax bill may be beyond your current or future financial abilities, including the ability to manage a payment plan. In these cases, asking the IRS for an OIC can reduce the amount owed. Qualifying for an OIC requires the taxpayer to file all their tax returns, be current on estimated quarterly tax payments, and have at least one tax bill from the IRS. You can use the IRS OIC Pre-Qualifier webpage to see if you’re eligible for a compromise.

  1. If you miss this deadline, the IRS can assess a late-filing penalty of 5% of the amount due for every month or partial month your return is late.
  2. Keep in mind, however, the above only applies if you’re actually required to file a tax return.
  3. If you file late, the first and best option is to respond to the IRS’ attempts to contact you about the taxes due.

Typically, to have your penalty waived under this policy, you must have filed and paid your taxes on time for the past three years. There are other requirements that you must satisfy as well. Some people who are fined because they miss the tax filing and payment deadline may qualify for penalty relief from the IRS. If you are hit with a penalty, contact the IRS by calling the number on your notice and explain why you couldn’t file and/or pay on time. They may cut you a break if you have a good reason like your house caught on fire, you were seriously ill, etc.

The IRS typically responds to installment agreement requests within 30 days. Persuading the IRS to give you more time after the tax-filing deadline to file your tax return is fairly easy. But there are several steps you’ll need to take if you’re filing taxes late.

The date from which we begin to charge interest varies by the type of penalty. Interest increases the amount you owe until you pay your balance in full. For more information about the interest we charge on penalties, see Interest.

Best Tax Software for February 2024

Think fire, natural disaster, serious illness, and the like. While taxes can be stressful, you don’t have to go it alone. Trust the expertise of H&R Block to help you file your taxes. Filing and paying as much as possible is key because the late-filing penalty and late-payment penalty add up quickly.

Even if a taxpayer can’t afford to immediately pay the full amount of taxes owed, they should still file a tax return to reduce possible delayed filing penalties. And finally, remember that a tax extension doesn’t give you more time to settle your tax bill. The IRS expects that you pay your estimated liability along with your tax extension request. Filing your taxes late can have dire financial consequences if you ignore notices from the IRS and don’t act to fix the situation.

Taxpayers who owe tax

The IRS may impose penalties if you file your taxes a day late, but there are exceptions. For more information, see the first time penalty abate page on If you don’t qualify for an online payment plan, you can ask the IRS for an installment agreement by filing Form 9465. Depending on your income, a set-up fee may apply if the IRS approves your agreement.

What happens if I miss the tax deadline?

You can still file your taxes for 2022, but you may not be able to avoid penalties. If you’re getting a tax refund, you won’t have to worry about being charged any penalties or interest. If you owe taxes, the two penalties mentioned above may apply. For most taxpayers, the deadline to file your 2021 federal tax return is Monday, April 18. It moved from the usual April 15 date because IRS offices in the District of Columbia were closed last Friday to mark Emancipation Day (which falls on April 16, but is observed on the closest weekday). Taxpayers who choose not to file a return because they don’t earn enough to meet the filing requirement may miss out on receiving a refund due to potential refundable tax credits.

Filing Your Taxes Late

But, if you need clarification on whether the 2023 state payment you received is taxable, consult a tax professional before filing your federal return. The IRS is launching a pilot program for Direct File, its in-house tax preparation and filing system this tax season. The program will enable eligible taxpayers from a dozen states to file their federal returns directly with the IRS at no cost. The pilot will be limited in scope and mainly involve state government employees with straightforward federal tax returns. Several hundred taxpayers will be selected to participate in the program.

Unpaid tax is the total tax shown on your return reduced by amounts paid through withholding, estimated tax payments, and allowed refundable credits. We normally “celebrate” Tax Day on April 15, but it was April 18 this year for most people because the 15th fell on a weekend. We calculate the Failure to File penalty based on how late you file your tax return and the amount of unpaid tax as of the original payment due date (not the extension due date). Unpaid tax is the total tax required to be shown on your return minus amounts paid through withholding, estimated tax payments and allowed refundable credits. The short answer is that you’ll likely face penalties — with interest — from the IRS.

Can I still file my taxes for 2022 after the deadline?

Electronic filing options, including IRS Free File, are still available on through October 16, 2023, to prepare and file returns electronically. If you made a conscious effort to file and pay your taxes by the tax deadline but weren’t able to due to unforeseen circumstances, you may qualify to have the penalties waived. The IRS may waive the penalties (and interest) assessed if you have a valid reason. Valid reasons vary and are based on the type of penalty you owe.

For struggling taxpayers unable to pay their tax bill, the IRS has several options available to help. And for months in which both penalties apply, the failure-to-file penalty will be reduced by the amount of the failure-to-pay what happens if you file taxes a day late penalty from that month. For example, you’ll be charged 4.5 percent of your unpaid tax for the failure-to-file penalty and 0.5 percent for the failure-to-pay penalty for a combined penalty of 5 percent.

Late penalties and interest can cause the balance to spiral out of control. As a result, it’s crucial to file as soon as possible and communicate with the IRS about your repayment options. The IRS works with taxpayers who can’t afford payment in full by creating installment plans, which are infinitely preferable to tax liens and asset seizure. The late-filing penalty affects people who owe taxes and don’t turn in their Form 1040 and other important tax documents on time.

You can also simply file your return and wait for the IRS to bill you, but don’t be surprised if the bill includes interest and penalties. Typically, the failure-to-pay penalty is less than the failure-to-file penalty so you likely should file even if you can’t pay the tax. But this year, filers get an extra three days to get their returns to the IRS. As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers.

Leave a Comment