What happens if you miss the tax filing deadline?

If you miss the April 15 tax filing deadline and owe taxes, the IRS charges a failure-to-file penalty of 5% of your unpaid taxes for each month or partial month your return is late, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty is $525 (for returns required to be filed in 2026) or 100% of the tax owed, whichever is less. If you do not owe taxes (you expect a refund), there is no penalty for filing late.

What is the penalty for not paying taxes on time?

The failure-to-pay penalty is 0.5% of your unpaid taxes per month or partial month, capped at 25%. This is separate from and much smaller than the failure-to-file penalty. If both penalties apply in the same month, the failure-to-file penalty is reduced to 4.5%, giving a combined rate of 5% per month. Interest also accrues daily on any unpaid balance at the federal short-term rate plus 3 percentage points.

What should I do if I missed the tax deadline?

File your return as soon as possible — even if you cannot pay anything. Filing stops the failure-to-file penalty, which is far more costly than the failure-to-pay penalty. Pay as much as you can when you file. If you cannot pay the full balance, apply for an IRS installment agreement to pay over time and reduce the failure-to-pay penalty rate while on an active plan.

Is there a penalty for filing taxes late if you are getting a refund?

No. If you are owed a refund, there is no penalty for filing your return late. The IRS has no financial harm to penalize. However, you must file within three years of the original due date to claim your refund. For 2025 returns (due April 15, 2026), the refund claim deadline is April 15, 2029. After that date, unclaimed refunds are permanently forfeited to the U.S. Treasury.

What is First-Time Penalty Abatement?

First-Time Penalty Abatement (FTA) is an IRS administrative waiver that removes failure-to-file and failure-to-pay penalties for taxpayers who have a clean penalty history. To qualify, you must have no IRS penalties in the prior three tax years, have filed all required returns (or have a valid extension on record), and have paid or arranged to pay all current taxes owed. You can request FTA by calling the IRS at the number on your notice.

How long before the IRS takes action on unpaid taxes?

After a missed deadline, the IRS typically begins sending a series of notices: CP14 (initial balance due notice), followed by CP501, CP503, and CP504 (escalating reminders). The CP504 is a formal notice of intent to levy. If the balance remains unpaid after the CP504, the IRS can begin collection actions including liens and levies. This escalation process typically takes several months but can move faster depending on the balance and prior compliance history.

What Happens If You Miss the Tax Deadline? (2026 Guide)