The federal tax deadline is April 15th every year. If you can’t file by then, you have until April 15 to request an extension. This gives you until October 15th the next year to file your unfiled tax return.
Here’s what you need to know: An extension gives you more time to file, NOT more time to pay. You still need to pay your estimated taxes by April 15 to avoid penalties and interest charges.
Did You Miss the Deadline?
First, figure out if you’re getting a refund or owe money.
If you’re getting a refund: You won’t face any penalties. The IRS only penalizes people who owe taxes and file late. You already overpaid, so there’s nothing to penalize. You can still file to get your refund.
If you owe taxes: File as soon as possible. Each day you wait costs you more money in penalties and interest.
How to File Late
You can visit IRS.gov and access the IRS Free File that you can use to file your taxes. The file will be available up to Oct 15.
You can file late without penalty if you qualify for extra time. These groups automatically get more time:
- Resident aliens who live and work outside the U.S.
- U.S. citizens who live and work outside the country
- Puerto Rico residents
- Support personnel in combat zones
- Military service members
- Some disaster victims
Late Filing Penalties Explained
The IRS charges 5% of your unpaid taxes for each month you file late. This caps at 25% of what you owe.
If you file more than 60 days late, the minimum penalty is $510 or 100% of your unpaid taxes (whichever is less).
Example: You owe $300 in taxes and file 70 days late. Your penalty would be $300 (100% of the tax due).
Another example: You owe $2,000 in taxes and file 70 days late. Your penalty starts at $510 minimum, plus you’ll owe interest on the full amount.
Can You Avoid Penalties?
Yes, in three situations:
1. First-time penalty abatement:
This is the easiest way to get penalty relief if you have a clean tax record. The IRS looks at your filing and payment history for the previous three years. If you filed all required returns on time, paid all taxes when due, and have no outstanding penalties, you qualify. You can request this relief over the phone by calling the IRS directly. No written explanation required. The IRS grants this relief once every three years for each tax type. This applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties. You still owe the tax and interest, just not the penalty. Most taxpayers with good compliance records get approved.
2. Reasonable cause:
This option works when circumstances outside your control prevented you from filing or paying on time. The IRS evaluates whether you made a real effort to comply with tax requirements but couldn’t because of specific events. Valid reasons include serious illness that prevented you from managing finances, death of an immediate family member right before the deadline, natural disasters that destroyed your records, or inability to get necessary tax documents despite multiple attempts. You need documentation to prove your claim: medical records showing hospitalization dates, death certificates, FEMA disaster declarations, or certified mail receipts showing you requested forms. The IRS reviews each case individually. Your reason must show you acted responsibly before and after the problem occurred. Simply forgetting the deadline or not having money to pay doesn’t qualify as reasonable cause.
3. Statutory exception:
This relief applies when federal tax law specifically allows an exception to penalty rules. The most common statutory exceptions include IRS errors in written advice, natural disasters in federally declared disaster areas, and certain military service situations. If you followed written advice from the IRS that later turned out wrong, you won’t get penalized. You must have the written communication from the IRS and show you provided accurate information when asking for guidance. Taxpayers in disaster areas declared by the president automatically qualify for penalty relief during the relief period. Combat zone participants receive automatic extensions and penalty relief while serving and for 180 days after leaving the zone. These exceptions require less documentation than reasonable cause because the law already defines the qualifying circumstances. The IRS typically grants statutory exceptions faster than other relief types because the criteria are clearly defined in the tax code.
How to Request Penalty Relief
Contact the IRS to request penalty relief. You’ll need to explain your situation and provide documentation.
Getting penalty relief approved takes specific knowledge of IRS procedures and tax code. You need to present your case in the exact way the IRS requires, with the right documentation and legal arguments. Most taxpayers who request relief on their own get denied because they don’t know what the IRS needs to see.
A tax attorney knows which relief type fits your situation and how to build your case. We handle the communication with the IRS, gather the required proof, and present your request using language that matches IRS criteria. If the IRS denies your first request, we file appeals and negotiate on your behalf.
Keep in mind: Even if the IRS removes your penalty, you still owe interest on unpaid taxes. This interest runs until you pay your full balance. We can help you set up payment arrangements that fit your budget while minimizing additional interest charges.
How to Pay What You Owe
Can’t pay everything at once? You have options:
- Direct Pay: Free electronic payment from your checking or savings account
- Payment plan: Set up monthly installments through IRS.gov
- Credit or debit card: Payments accepted through third-party processors (fees apply)
- Offer in Compromise: Ask to settle your debt for less than you owe (strict qualifications apply)
Check your balance at IRS.gov by creating an online account. You’ll need to verify your identity through IRS Secure Access.
Made a Mistake on Your Return?
Small errors don’t require action. The IRS fixes math mistakes automatically and contacts you if they need missing forms.
You need to file an amended return if you:
- Reported wrong income amounts
- Claimed incorrect deductions or credits
- Changed your filing status
- Need to add or remove a dependent
Use IRS Form 1040-X to amend your return. The IRS Interactive Tax Assistant can help you decide if you need to amend.
Best Practice: File on Time
Filing on time protects you from penalties and reduces stress. Even if you can’t pay your full tax bill, file your return. You’ll avoid the failure-to-file penalty, which is much higher than the failure-to-pay penalty.
Need help with complex tax issues? Contact us to speak with a tax attorney about your situation.
