12
What Happens If You File Taxes Late? How Penalties Work
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
do not influence our editors’ opinions or ratingsWhat Happens If You File Taxes Late? How Penalties Work
The failure-to-file penalty is usually 5% of the tax owed for each month your return is overdue, up to 25% of the bill.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Updated · 2 min readHow is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
More on our editorial rigor
Editor & Content Strategist
Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + more
Head of Content, Investing & Taxes
19 years of experience Expertise Retirement planning investment management investment accountsArielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Head of Content, Investing & Taxes + more + more
Editor & Content Strategist
23 years of experience Expertise Taxes Small business Social Security and estate planning Home services RIATina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets.
Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets. Published in Editor & Content Strategist + more + moreIf you owe taxes and didn't file your federal income tax return by the tax deadline, there may be consequences in the form of IRS penalties and interest.
If you owe taxes and didn't file your federal income tax return by the tax deadline , there may be consequences in the form of IRS penalties and interest.What happens if you file late and owe taxes?
What happens if you file late and owe taxes?Failure-to-file penalty
Failure-to-file penaltyThe failure-to-file penalty is assessed if you owe taxes and fail to submit your tax return on time. The penalty is 5% of your unpaid taxes for each month or partial month the return is late, up to a maximum of 25% of your tax bill
The failure-to-file penalty is assessed if you owe taxes and fail to submit your tax return on time. The penalty is 5% of your unpaid taxes for each month or partial month the return is late, up to a maximum of 25% of your tax bill Internal Revenue Service. Failure to File Penalty. Accessed Jan 22, 2026. .Late-payment penalty
Late-payment penaltyThe late-payment penalty is assessed if you fail to pay your tax bill by the deadline. The penalty is 0.5% of your unpaid bill for each month your outstanding taxes are unpaid, up to 25% of your outstanding bill, plus interest.
The late-payment penalty is assessed if you fail to pay your tax bill by the deadline. The penalty is 0.5% of your unpaid bill for each month your outstanding taxes are unpaid, up to 25% of your outstanding bill, plus interest. More details on penaltiesThe IRS could hit you with both a late-filing penalty and a late-payment penalty if your bill and return are both overdue. When both penalties are issued in the same month, the late-filing penalty is reduced by the amount of the late-payment penalty for that month
The IRS could hit you with both both a late-filing penalty and a late-payment penalty if your bill and return are both overdue. When both penalties are issued in the same month, the late-filing penalty is reduced by the amount of the late-payment penalty for that month Internal Revenue Service. Failure to File Penalty. Accessed Sep 24, 2024. .If your return is more than 60 days late, the minimum failure-to-file penalty is $525 or the entire amount of tax owed, whichever is smaller. The late-filing penalty maxes out after five months of your return being late, but other penalties and interest may continue to accrue.
If your return is more than 60 days late, the minimum failure-to-file penalty is $525 or the entire amount of tax owed, whichever is smaller. The late-filing penalty maxes out after five months of your return being late, but other penalties and interest may continue to accrue.Some late filers may be eligible for tax relief in the form of a penalty abatement if they meet certain conditions. For example, you might be eligible for penalty relief if you have a reasonable explanation for filing late or if this is your first time missing the deadline.
Some late filers may be eligible for tax relief in the form of a penalty abatement if they meet certain conditions. For example, you might be eligible for penalty relief if you have a reasonable explanation for filing late or if this is your first time missing the deadline.» MORE: How to set up a payment plan with the IRS
» MORE: » MORE: How to set up a payment plan with the IRSWhat happens if you file taxes late but don't owe anything?
What happens if you file taxes late but don't owe anything?There is usually no penalty for filing your tax return late if you're owed a refund. But if you're required to file by law, you should still plan to submit your return as soon as possible.
There is usually no penalty for filing your tax return late if you're owed a refund. But if you're required to file by law, you should still plan to submit your return as soon as possible.Also, keep in mind that you typically have just three years to claim any tax refunds due to you. This means that if you didn't file your tax return last year but think you were due a refund, you only have until 2028 to file a tax return for that year to claim it.
Also, keep in mind that you typically have just three years to claim any tax refunds due to you. This means that if you didn't file your tax return last year but think you were due a refund, you only have until 2028 to file a tax return for that year to claim it.» MORE: How much do you have to make to file taxes
» MORE: » MORE: How much do you have to make to file taxesHow to avoid a penalty for filing taxes late
How to avoid a penalty for filing taxes lateA tax extension can get you an extra six months, until Oct. 15, to finish your tax return. The deadline to request an extension is Tax Day.
A tax extension can get you an extra six months, until Oct. 15, to finish your tax return. The deadline to request an extension is Tax Day.If you do get an extension, an important thing to know is that it only gives you more time to file your tax return, not more time to pay your taxes. You are still required to submit an estimated tax payment by the April 15 deadline. Otherwise, anything you owe past the tax deadline might be subject to that late-payment penalty and interest.
If you do get an extension, an important thing to know is that it only gives you more time to file your tax return, not more time to pay your taxes. You are still required to submit an estimated tax payment by the April 15 deadline. Otherwise, anything you owe past the tax deadline might be subject to that late-payment penalty and interest.Some people, such as victims of natural disasters, certain members of the military or Americans living overseas, may automatically get more time to file. .
Some people, such as victims of natural disasters, certain members of the military or Americans living overseas, may automatically get more time to file. .How long can you go without filing taxes?
How long can you go without filing taxes?While the government usually has just six years to charge you with criminal tax evasion, it has forever to collect the taxes you owe and assess penalties. In addition to the failure-to-file and late-payment penalties, these things could happen to you when the IRS catches up:
While the government usually has just six years to charge you with criminal tax evasion, it has forever to collect the taxes you owe and assess penalties. In addition to the failure-to-file and late-payment penalties, these things could happen to you when the IRS catches up:Interest: On top of penalties, interest accrues on your unpaid taxes.
Interest: Interest: On top of penalties, interest accrues on your unpaid taxes .A substitute return: If you fail to file but the IRS has some information needed to calculate your taxes, such as your W-2 form, you may be notified by mail that it has filed a return on your behalf. It won’t consider the tax credits, deductions or other tax breaks you may have taken if you’d done your taxes.
A substitute return: A substitute return: If you fail to file but the IRS has some information needed to calculate your taxes, such as your W-2 form , you may be notified by mail that it has filed a return on your behalf. It won’t consider the tax credits, deductions or other tax breaks you may have taken if you’d done your taxes.Lost refunds: You may be missing out on money you’re owed. In most cases, you get a three-year window to file previous years’ returns
Lost refunds: Lost refunds: You may be missing out on money you’re owed. In most cases, you get a three-year window to file previous years’ returns Internal Revenue Service. Filing Past Due Tax Returns. Accessed Feb 26, 2025. . Once this window closes, you forfeit your tax refund.» MORE: How to file back taxes
» MORE: » MORE: How to file back taxes AD Get reliable back tax relief with our team of A+ rated tax professionals Trusted & Top-Rated Nationwide — 4.9★ Google rating. Learn moreon Priority Tax Relief's website
AD Owe $10,000+ in IRS Back Taxes? Get Trusted Tax Help Today BBB Accredited, $500M+ tax debt resolved, free consultation. Learn moreon Alleviate Tax's website
Helpful resources
Helpful resources How to File a Tax Extension Online in 2026 What Is a Tax Lien? How It Works, How to Stop One Tax Levy: What It Is, How It Works and How to Stop One More like this Taxes Tax Relief and Resolution: 5 Ways to Deal With Tax Debt If you're behind on taxes or finding it hard to keep up with your IRS payments, here are five tax relief options that could help. 2 By Sabrina Parys, Tina Orem Guide to IRS Customer Service and Phone Numbers Lesser-known IRS customer service phone numbers could help you skip the line or talk to a person faster. Plus, learn where you can get in-person help if you need it. 2 By Tina Orem, Sabrina Parys IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem Get started Get startedon Anthem Tax Services's website
Minimum Tax Amount: $10,000;
Minimum Tax Amount: $10,000;100% Money-Back Guarantee;
100% Money-Back Guarantee;Free, No-Obligation Tax Analysis;
Free, No-Obligation Tax Analysis;A+ BBB Rating.
A+ BBB Rating. Get started Get startedon Anthem Tax Services's website