Can You Still File Taxes After the Deadline?

It is possible to address your tax obligations even if the official deadline has passed. Taking prompt action to file and arrange for payment can help manage potential financial repercussions. While missing the deadline can lead to penalties and interest, procedures and relief options are available. This guide explains the consequences and steps to become compliant.

Penalties for Late Filing and Payment

Missing the tax deadline can result in two distinct penalties: failure-to-file and failure-to-pay. Both can apply if you neither file your return nor pay your taxes on time. The failure-to-file penalty is generally more substantial, calculated as 5% of the unpaid taxes for each month or part of a month the return is late, with a maximum of 25% of your unpaid tax. If your return is over 60 days late, a minimum penalty may apply, which is the lesser of $510 (for returns due in 2025) or 100% of the tax owed.

The failure-to-pay penalty is typically 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, also capped at 25% of your unpaid taxes. If both penalties apply in the same month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty, ensuring the combined monthly penalty does not exceed 5%. It is important to file your return even if you cannot pay the full amount, as the penalty for not filing is significantly higher than the penalty for not paying.

Interest also accrues on any unpaid taxes, and this interest is compounded daily from the original due date until the balance is paid in full. The interest rate for underpayments is determined quarterly and is typically the federal short-term rate plus three percentage points; for the first half of 2025, this rate was 7% for individuals. Interest can also be charged on penalties themselves.

A different scenario arises if you are due a refund; in this situation, there is generally no penalty for filing late. Penalties are primarily based on the amount of tax owed, so if no tax is due, no late filing or payment penalty is assessed. To claim your refund, you must file your return within three years from the original due date, otherwise, you risk losing your right to it.

How to File Your Overdue Return

To file an overdue tax return, gather all necessary tax documents for the specific year. This includes income statements like W-2s or 1099s, records of deductions, and other relevant financial information.

You can prepare your overdue tax return using methods similar to filing on time. Options include using tax software for prior years, consulting a qualified tax professional, or obtaining and completing official IRS forms directly. The IRS provides past year forms and instructions online or by phone.

Once prepared, your overdue return must be submitted by mail to the appropriate IRS service center. Unlike current year returns, prior year returns often cannot be e-filed, especially if significantly past the due date. Sign and date the return and keep a copy for your records before mailing it.

If you owe taxes but cannot pay the full amount immediately, file your return to mitigate the failure-to-file penalty. Explore payment options with the IRS. A short-term payment plan may provide up to 180 days to pay your balance, available for those owing less than $100,000 in combined tax, penalties, and interest. For a longer repayment period, an Offer in Compromise (OIC) might be considered, allowing you to settle your tax debt for a lower amount if you face significant financial hardship or doubt about your ability to pay the full amount.

Options for Penalty and Payment Relief

Taxpayers who incurred penalties for late filing or payment have avenues for relief. One administrative waiver is the First-Time Abatement (FTA), which can remove failure-to-file, failure-to-pay, and failure-to-deposit penalties. To qualify for FTA, you must generally have a clean compliance history, meaning no penalties for the three tax years prior to the year in question, and you must have filed all required returns or arranged to pay any tax due. You can request FTA by calling the IRS or sending a signed, written statement.

If you do not qualify for First-Time Abatement, you may still be eligible for penalty relief based on “reasonable cause.” This applies when you demonstrate that you exercised ordinary business care and prudence but were unable to meet your tax obligations due to circumstances beyond your control. Common examples include serious illness or death of the taxpayer or an immediate family member, natural disasters, or inability to obtain necessary records despite diligent efforts. You must provide a detailed explanation and supporting documentation for your claim.

The IRS offers formal payment arrangements for outstanding tax liabilities. An installment agreement allows monthly payments for up to 72 months (six years), provided you owe $50,000 or less in combined tax, penalties, and interest and have filed all required returns. Setting up an installment agreement can often be done online via the IRS website. While on an installment agreement, interest and penalties continue to accrue, but the failure-to-pay penalty may be reduced to 0.25% per month.