As tax season 2025 winds down, millions of Americans have already filed their returns. But if you’re still holding off — and especially if you owe money — you could be heading straight into penalty territory. The IRS doesn’t take late filing lightly, and the cost of delay can stack up fast.
Here’s exactly what happens if you miss the April 15 deadline, how the IRS calculates penalties, and what you can do to minimize the damage.
Refunds
Let’s start with the good news. If you’re expecting a refund, there’s no penalty for filing late. You won’t owe a dime in fines — but your refund will be delayed. And there is a three-year limit to claim it, so don’t wait forever.
Missed filing your 2021 return? You only have until April 15, 2025 to claim that refund before it vanishes into the U.S. Treasury.
Penalties
Now, if you owe taxes and you haven’t filed, that’s when things get expensive.
The IRS imposes two main penalties:
- Late Filing Penalty: 5% of your unpaid tax per month, up to a max of 25%
- Late Payment Penalty: 0.5% of unpaid tax per month, also up to 25%
Even being one day late counts as a full month in the IRS’s eyes. So yes, that April 16 filing? It’s already penalized.
Here’s how that adds up:
| Time Late | Late Filing Penalty | Late Payment Penalty | Total Potential Penalty |
|---|---|---|---|
| 1 Month | 5% | 0.5% | 5.5% |
| 3 Months | 15% | 1.5% | 16.5% |
| 5 Months+ | 25% | 2.5%+ | Up to 50%+ |
And it doesn’t stop there. The IRS also charges interest on unpaid balances, currently at 7% annually, which compounds daily.
Minimums
If you’re over 60 days late, the minimum failure-to-file penalty is $510 or 100% of your unpaid tax, whichever is less. That means even if you only owe $400, the penalty could still be $400.
TurboTax and the IRS agree — the longer you delay, the higher the bill.
Extensions
You can file for a free extension until October 15, but be warned: that only covers filing, not payment.
So if you owe taxes, the interest and penalties still start from April 15, not your extension date. There are some exceptions for:
- U.S. citizens living abroad
- Victims of federally declared disasters
- Military members in combat zones
But for most of us, the payment clock starts ticking the moment the deadline passes.
Help
Need help? The IRS offers online tools through its “Let Us Help You” portal, where you can:
- Set up a payment plan
- Calculate what you owe
- Get answers to basic filing questions
If you prefer expert advice, hiring a CPA or tax professional is also an option, though it may come with an additional cost.
If you’ve missed the deadline and owe money, the best move is simple: act fast. File your return and pay what you can to reduce the penalties and interest. Every month you wait, your debt gets bigger.
FAQs
Is there a penalty if I’m owed a refund?
No, but you have 3 years to claim it before it’s gone.
How much is the late filing penalty?
5% of unpaid tax per month, up to 25% total.
Do I get penalized if I file one day late?
Yes, the IRS counts one day late as a full month.
What’s the current interest rate on tax debt?
The IRS charges 7% annually, compounding daily.
Can I avoid penalties with an extension?
Only for filing, not payment. Penalties still apply.
