Each year, millions of Americans rush to meet the tax filing deadline—but what happens if you miss it? Whether it slipped your mind or life simply got in the way, missing the tax deadline can lead to consequences that get more serious the longer you wait. Here’s what you need to know if April 15th came and went and your return didn’t get filed.
Late Filing vs. Late Payment: What’s the Difference?
First, let’s clear up a common misconception: filing late and paying late are not the same thing. You can still file on time even if you can’t pay your tax bill in full—and doing so could save you from additional penalties.
- Late Filing Penalty: Generally, 5% of the unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%.
- Late Payment Penalty: Typically 0.5% of your unpaid taxes per month, also capping at 25%.
The sooner you file, even if you owe, the better. Interest also accrues daily on top of the penalties.
What If You’re Owed a Refund?
If the IRS owes you money, good news: there’s no penalty for filing late. However, you still need to act. The IRS gives you a three-year window to claim your refund. If you miss that deadline, your money goes back to the U.S. Treasury.
Let’s say you were due a refund in 2021 and forgot to file. You have until April 2024 to get that return in—after that, it’s gone for good.
What If You Meant to File an Extension?
Extensions can be a great safety net—they give you six extra months to file your tax return (until October 15 in most cases). But here’s the catch: you have to file for the extension before the April deadline. If you missed both, you’re officially in late territory.
Also important: extensions give you more time to file, not more time to pay. If you owed taxes but didn’t pay by April 15, penalties and interest began accruing the next day—even if you were granted an extension.
What To Do Now If You Missed the Deadline
The longer you wait to act, the more the penalties and interest add up. So here’s your plan:
- File ASAP – Even if you can’t pay what you owe, filing now stops the late filing penalty from growing.
- Pay What You Can – Any amount you pay now reduces the total interest and penalties.
- Set Up a Payment Plan – The IRS offers installment agreements to help taxpayers who can’t pay in full.
- Talk to a Pro – If your tax situation is more complex, or you’ve missed more than one deadline, getting professional help is the smart move.
As Matthew Dixon, CEO of TruNorth Advisors, often advises, proactive tax planning and staying ahead of deadlines can help individuals and business owners avoid costly mistakes that compound over time.
When to Seek Professional Help
If you’ve missed multiple deadlines or owe a large amount in taxes, it may be worth speaking with a tax professional or financial advisor. They can help you navigate penalties, negotiate payment options with the IRS, and create a plan to stay current in the future.
