What Happens If You File Your Taxes Late?

Life gets busy. Maybe tax season crept up on you, or maybe you were waiting on one last document. Whatever the reason, many taxpayers miss the deadline — and then wonder, “Now what?”. If you’ve filed late, here’s what you need to know — and how to fix it.

⏰ 1. There Are Two Main IRS Penalties

Failure-to-File Penalty – If you don’t file by the deadline, the IRS charges 5% of the unpaid taxes per month, up to 25%.

Failure-to-Pay Penalty – If you file but don’t pay, the penalty is usually 0.5% per month, also up to 25%.

➡️ Tip: Even if you can’t pay your taxes, file on time — it can save you hundreds or thousands in penalties.

💳 2. Interest Starts Adding Up Immediately

On top of penalties, the IRS charges interest on any unpaid taxes. It compounds daily and continues until the full balance is paid. The current rate is around 8% (but it changes quarterly).

📝 3. You Can Still File After the Deadline

Yes — you should still file, even if you missed the deadline. Late is better than never, and filing now can:

• Reduce future penalties

• Get your refund (if you’re due one)

• Get you back in compliance

• If you wait too long (more than 3 years), you lose your refund permanently.

💡 4. You Might Qualify for Penalty Relief

If this is your first time filing late, you may be eligible for the IRS’s First-Time Penalty Abatement program — especially if you’ve filed on time the past 3 years and don’t have any outstanding tax issues.

Other options include:

• Reasonable cause relief (e.g. illness, death in the family, natural disaster)

• Payment plans or installment agreements

• A tax professional can help you request this — and increase your chances of success.

📌 5. Extensions Only Give You More Time to File — Not to Pay

Filing an extension gives you until October to file your return — but your tax payments are still due by the April deadline! If you owe and don’t pay by then, penalties and interest still apply.

✔️ The Bottom Line

Late doesn’t mean hopeless. Whether you missed the deadline by a week or a year, the best thing you can do is take action — now. The sooner you file (and pay if needed), the less damage you’ll face from penalties and interest.

📞 Need Help Filing Late Taxes?

At Kammer Accounting Services, we help individuals and businesses file late returns, reduce penalties, and get back on track with the IRS. No judgment — just smart, experienced help. Contact us today for a confidential consultation.