What to do if you miss the federal tax filing deadline

Feb 22

Missing the federal tax filing deadline can be stressful, but it’s not the end of the world. Whether you forgot to file, didn’t have all your documents ready, or simply procrastinated, there are steps you can take to minimize penalties and get back on track. Here’s what you need to do if you missed the tax filing deadline.

1. File As Soon As Possible

Even if the deadline has passed, you should still file your tax return as soon as you can. The longer you wait, the more penalties and interest you may owe. The IRS continues to accept late returns, so don’t delay. If you’re owed a refund, there’s no penalty for filing late. However, you must file within three years of the original due date to claim your refund.

If you owe taxes, filing late can result in both failure-to-file and failure-to-pay penalties.

2. Understand Late Filing and Payment Penalties

If you owe taxes and missed the deadline, the IRS may charge:

Failure-to-file penalty: 5% of the unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%.
Failure-to-pay penalty: 0.5% of the unpaid taxes for each month the tax remains unpaid, up to 25%.
Interest: In addition to penalties, interest accrues daily on any unpaid balance until it is fully paid.

If you file more than 60 days late, the minimum penalty is either $485 or 100% of the unpaid tax, whichever is lower.

3. Pay as Much as You Can

If you can’t pay your full tax bill, pay as much as possible when you file. This helps reduce the penalties and interest that will continue to accrue.

The IRS offers payment plans if you need more time to pay off your balance:

Short-term payment plan (less than 180 days): No setup fee, but penalties and interest apply.
Long-term payment plan (more than 180 days): Requires a setup fee unless you qualify for a low-income waiver.

You can apply for a payment plan online through the IRS website.

4. Request Penalty Relief (If You Qualify)

If this is your first time filing late, you might qualify for First-Time Penalty Abatement if:

You have filed and paid on time for the past three years.

You have no prior penalties for failing to file or pay.

You have paid or made arrangements to pay any taxes due.

You can also request penalty relief if you have reasonable cause, such as:

A serious illness, hospitalization, or natural disaster.

Death of an immediate family member.

Unavoidable circumstances that prevented you from filing on time.

To request penalty relief, call the IRS at 1-800-829-1040 or submit a written request.

5. File an Extension Next Year (If Needed)

If you missed the deadline because you weren’t ready to file, consider requesting an extension next time. The IRS grants a six-month filing extension (until October 15) if you submit Form 4868 by the original due date.

However, an extension only gives you more time to file, not more time to pay. You still need to estimate and pay any taxes owed by the original deadline to avoid interest and penalties.

6. Avoid Future Late Filings

To prevent missing deadlines in the future:

Set calendar reminders for tax deadlines.
Organize tax documents throughout the year.
Consider using a tax professional to ensure timely filing.
Make estimated tax payments if you are self-employed to avoid large balances at tax time.

Final Thoughts

Missing the tax deadline isn’t ideal, but it’s a problem you can fix. The sooner you file and pay, the less you’ll owe in penalties and interest. If you’re struggling to pay, explore IRS payment options and possible penalty relief.

Need help? A tax attorney can guide you through the process and ensure you stay compliant in the future.