The IRS is encouraging taxpayers who missed the April 15 filing deadline to file their federal tax returns as soon as possible. Prompt action can help minimize penalties and interest charges, especially for those who owe taxes.
While many taxpayers filed on time or requested an extension, the IRS emphasizes that anyone who missed both should not wait to take the next step. Filing now—even if unable to pay the full amount—can significantly reduce late filing penalties.
Penalties Add Up Quickly
The failure-to-file penalty is typically 5% of the unpaid taxes for each month the return is late, up to 25%. In contrast, the failure-to-pay penalty is usually 0.5% per month. By filing now, taxpayers can at least stop the more severe failure-to-file penalty from growing further.
What to Do If You Can’t Pay Right Away
The IRS advises that taxpayers file immediately and explore payment options, even if they can’t pay the full balance. Available options include:
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Online payment agreements
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Short-term extensions to pay
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Installment plans
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Offers in compromise for those who qualify
Refunds at Risk
For those who are owed a refund, there’s no penalty for filing late. However, waiting too long to file may result in losing that refund altogether. Taxpayers have a three-year window to claim their refunds, which closes once that time passes.
E-Filing Still Available
Taxpayers can still e-file returns using IRS Free File or commercial software. Direct deposit remains the fastest way to receive any refund.
Need Help With Back Taxes?
Explore how to REDUCE, RESOLVE, or even ELIMINATE your back taxes through the IRS Fresh Start Program.
If you owe back taxes or have IRS issues, click here or call us directly at (877) 542-0412.
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