Can I File My 2023 Taxes in 2024?

You can file your 2023 tax return in 2024 even after the deadline has passed. The consequences of filing late depend on whether you owe the IRS additional tax or are expecting a refund. This distinction determines if you will face penalties or simply need to claim your money within a specific timeframe.

Penalties for Filing Late When You Owe Taxes

If you file a tax return after the deadline and owe the government, you will face two separate penalties. The Failure to File penalty is 5% of the unpaid taxes for each month or part of a month that a return is late. This penalty begins the day after the tax due date and is capped at 25% of your unpaid taxes.

The Failure to Pay penalty is 0.5% of the unpaid taxes for each month the taxes remain unpaid, also capped at 25%. Since the Failure to File penalty is higher, it is best to file your return as soon as possible, even if you cannot pay the full amount. When both penalties apply in the same month, the Failure to File penalty is reduced by the amount of the Failure to Pay penalty.

Interest can be charged on underpayments and unpaid penalties. The interest rate is determined quarterly and is the federal short-term rate plus 3 percentage points. This interest compounds daily, which causes the amount you owe to grow more rapidly over time.

For returns filed more than 60 days after the due date, the minimum Failure to File penalty is the smaller of $485 for returns due in 2024 or 100% of the tax owed. For example, if you owe $1,000 and file three months late, you could face a Failure to File penalty of $150 and a Failure to Pay penalty of $15, plus daily compounding interest.

Filing Late When You Are Owed a Refund

If you are due a refund from the IRS, there is no penalty for filing your federal tax return late. Since penalties are based on tax owed, they do not apply if you have overpaid. The main consequence is that the government holds your money longer than necessary.

The IRS gives taxpayers a three-year period from the original tax return due date to file and claim a refund. For the 2023 tax year, which had a filing deadline in April 2024, you have until the same date in 2027 to file your return. If you do not file within this three-year window, the refund is forfeited to the U.S. Treasury.

How to File Your Late 2023 Tax Return

To file your late 2023 tax return, first gather all necessary income documents, such as W-2s and any 1099 forms. You will also need records for any deductions or credits you plan to claim, including receipts for charitable donations, medical expenses, or tuition payments.

You have several options for preparing and submitting your past-due return.

• Use commercial tax software that supports the preparation of prior-year returns.
• Access Free File Fillable Forms for previous years on the IRS website, which are electronic forms with basic calculation functions.
• Hire a tax professional, such as a CPA or Enrolled Agent, to help prepare and file the return, which is a good option for complex situations.
• Download the 2023 tax forms, like Form 1040, from the IRS website, fill them out, and mail them to the designated processing center.

Requesting Relief from Penalties

After filing your late return and receiving a penalty notice from the IRS, you may be able to request penalty abatement. Under the First-Time Penalty Abatement program, you may qualify if you have a clean compliance history for the prior three years. You must also have filed all required returns and paid, or arranged to pay, any tax due.

Another basis for relief is “Reasonable Cause,” which requires showing you were unable to file or pay on time due to circumstances beyond your control. Examples include a serious illness or death in the immediate family, or the destruction of your home or records in a casualty.

To request relief, you can call the phone number on your IRS notice and be prepared to explain your situation with supporting documentation. You can also request abatement in writing by responding to the notice with a letter explaining your reason for the delay.