Worried About Missing The Extended Tax Deadline? Here’s What You Need To Know (2024)

Whether you were waiting on a delayed tax form or simply procrastinating your payment to Uncle Sam, there are many reasons you may have missed the mid-April tax deadline. No matter the reason for the delay, you should have submitted IRS Form 4868 to request an extension by the due date.

A tax extension gives you more time to file, typically until October 15 unless the date falls on a weekend or holiday. In that case, you have until the next business day. For the 2023 tax season, the extended tax deadline was October 16, 2023.

If you got an extension but were not able to make the October deadline either, here’s what you need to know.

What Is the Penalty for Missing a Tax Deadline?

Generally, if you miss the filing due date or fail to file by the tax extension deadline, the IRS may charge a failure-to-file penalty. The penalty is based on the amount of your unpaid taxes, and the IRS charges 5% of your taxes due for every month or partial month your tax return is not filed. However, the amount the IRS can charge you is capped at 25% of the taxes owed.

For example, let’s say you owe $10,000 in taxes. The IRS will charge you $500 for every month you haven’t filed your taxes. But the maximum the IRS may charge you is $2,500.

It’s important to know that if you expect a tax refund and have yet to file your tax return, the IRS won’t charge you a penalty for late filing. If you expect to owe penalties for filing your tax return late, you should consider speaking with a tax professional before filing. You may be responsible for additional penalties and interest.

Other Consequences of Missing a Tax Deadline

In addition to facing penalties and interest, you may face other consequences if you miss the tax deadline. The IRS may file a tax return on your behalf, a process known as substitute for return (SFR). While it may seem convenient to have the IRS file your return, it has some disadvantages.

For example, the IRS will use income items reported to the agency but won’t give you credit for any tax deductions or credits you may be entitled to. Because of this, you may end up owing more taxes than if you had filed your tax return.

If You Owe, Pay as Much as You Can To Reduce Penalties

Although generally there’s no penalty for submitting your taxes late when you’re expecting a refund, the IRS may assess penalties if you owe taxes.

Even if you miss the tax deadline, you should pay as much as possible as soon as you can. Taking this step can reduce any interest or penalties on your tax account, such as the failure-to-file penalty or the failure-to-pay penalty.

If you file your tax return late, the IRS may assess the failure-to-file penalty for the unpaid tax due on the original due date (not the tax extension due date). Unpaid tax is the tax required to be reported on your return, minus any withholding, estimated tax payments and refundable credits.

The IRS calculates the failure-to-file penalty as 5% of the unpaid taxes for each month (or part of the month) that the tax return is late. However, the penalty won’t exceed 25% of your unpaid taxes.

You may also be assessed a failure-to-pay penalty if you fail to pay taxes you report on your return by the original due date or by an approved extended deadline, such as those granted for a federally declared disaster. Taxes that remain unpaid for a month (or part of a month) will be assessed a failure-to-pay penalty of 0.5% per month.

In months where both the failure-to-file and failure-to-pay penalties apply, the failure-to-file penalty will be reduced by 0.5% (which is equal to the failure-to-pay penalty). So instead of a 5% failure-to-file penalty for the month, you’ll be charged 4.5% for not filing.

For example, let’s say you didn’t file or pay your taxes of $5,000. If the IRS assesses both the failure-to-file and failure-to-pay penalties in one month, you will owe a penalty of 5%, or $250 ($5,000 x 5%). That amounts to a 0.5% failure-to-pay penalty and a 4.5% failure-to-file penalty for one month.

Even if you file a timely extension with the IRS, remember that it won’t extend the deadline to pay, nor will it prevent penalties. To avoid incurring additional interest or penalties, you should estimate your taxes and pay any amount due by the original tax deadline.

To get a better understanding of how penalties may affect your account, consult a tax professional.

Request Your Tax Refund Before You Lose It

It’s still a good idea to file your taxes after the due date if you expect a refund—but you don’t want to wait too long.

The IRS usually allows you three years from the due date of your tax return to request your refund. After that time, you’ll forfeit the money. For example, your 2022 tax return was due on April 18, 2023. You have three years from that date to request a refund. So if you don’t file your 2022 return by the tax due date in 2026, you’ll lose your 2022 tax refund. That money stays in the U.S. Treasury.

Even if you don’t owe, the IRS may still expect you to file a return.

If you’re missing your tax documents from a prior year, you can request it from your employer, bank or other third party, such as an educational institution or student loan provider. You can also request missing tax forms from the IRS by using the Get Transcript Online tool or creating an IRS online account.

You Can Still File Your Taxes for Free After the Deadline

If you miss the tax deadline—for any reason—most taxpayers can still file their taxes for free. The IRS offers the Free File Program, which allows any taxpayer with an adjusted gross income of $73,000 or less to file for free.

The Free File Program guides taxpayers through a step-by-step process where they answer simple questions. To file, you can choose from a list of tax software providers such as TaxSlayer and TaxAct. And while you can file most federal forms for free, you may have to pay an additional fee for state tax return filings.

The IRS program is usually available until mid-October each year.

If your income is greater than $73,000, you can choose the IRS Free File Fillable Forms. You’ll need to do more work to file, though. The Free Fillable Forms allow you to file electronically but provide limited guidance and calculations.

What if I Still Can’t Pay My Taxes?

While it’s always in your best interest to pay as soon as you can, there are some instances in which you simply can’t. Here are a few payment options if you can’t pay in full.

• Short-term payment plans. If you qualify, you’ll have 180 days to pay in full. There’s no fee to request this payment option; however, interest and penalties may continue to grow until your taxes are paid. You’ll qualify to apply online if you owe less than $100,000, including interest and penalties. You can set up a payment plan by using the IRS online payment agreement application or calling (800) 829-1040.
• Monthly installment agreements. Often referred to as long-term payment plans, they allow you to make payments on your taxes in monthly increments. You qualify to apply for an installment agreement online if you owe less than $50,000, including interest and penalties. Online setup fees range from $31 to $130. Depending on your income, you may not be required to pay the fee.
• Temporary delay in collection. The IRS can also temporarily delay collection of a tax debt if you are unable to pay it. You may have to complete a “Collection Information Statement” (Form 433-F) in order to request this relief. Proof of your financial status is also required. It’s important to keep in mind that the amount you owe will continue to increase due to penalties and interest.

Frequently Asked Questions (FAQs)