What Happens If You File Your Taxes One Day Late?

Tax deadlines require taxpayers to meet obligations by a certain date. Even a slight delay in filing or paying taxes can result in financial repercussions. Understanding these deadlines and their consequences is important.

Understanding the Difference Between Filing and Paying

The process of submitting your tax return, known as filing, is a distinct obligation from remitting any taxes you owe, which is called paying. Filing involves sending the required forms, such as Form 1040 for individuals, to the tax authority. Paying means sending the actual monetary amount of tax due. Separate penalties may apply depending on whether you file late, pay late, or both.

It is possible to file your return on time but pay late, or to pay on time but file late. Each scenario carries its own set of rules and potential penalties. For instance, if you file an extension, you extend the time to file your return, but not the time to pay any taxes owed. This distinction is important for understanding the consequences of missing tax deadlines.

Consequences for Late Filing

Failing to file your tax return by the deadline can lead to a penalty. This “Failure-to-File” penalty, outlined in Internal Revenue Code Section 6651, is 5% of the unpaid taxes for each month or part of a month the return is late. This penalty can accumulate up to a maximum of 25% of your unpaid taxes. Even if your return is only one day late, the penalty for the entire month applies.

For example, if you owe $1,000 in taxes and file one day late, a 5% penalty ($50) would be assessed for that first month. If your return is more than 60 days late, the minimum penalty for 2025 is $525 or 100% of the unpaid tax, whichever is less. If you are due a tax refund, there is no penalty for filing late, but you must still file to claim your refund.

Consequences for Late Payment

If you file your return on time but do not pay the taxes owed by the deadline, you may incur a “Failure-to-Pay” penalty. This penalty is 0.5% of the unpaid taxes for each month or part of a month the taxes remain unpaid. This penalty can also reach a maximum of 25% of the unpaid tax. If both the failure-to-file and failure-to-pay penalties apply in the same month, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty, resulting in a combined monthly penalty of 5%.

Beyond penalties, interest is charged on any unpaid taxes from the original due date until the date of payment. This interest is compounded daily on the unpaid balance, which includes the original tax, penalties, and prior interest. The Internal Revenue Service (IRS) sets these interest rates quarterly, and for individuals, the underpayment rate for the first and second quarters of 2025 is 7% per year, compounded daily.

What to Do If You Miss the Deadline

If you realize you have missed a tax deadline, act promptly to minimize further penalties and interest. You should file your tax return as soon as possible, even if you cannot pay the full amount owed.

You should also pay as much of your tax liability as you can to reduce the amount subject to penalties and interest. If you cannot pay the full amount immediately, the IRS offers payment options, such as installment agreements, which can reduce the monthly failure-to-pay penalty to 0.25%. The immediate action should be to file and pay any amount possible to mitigate additional charges.