What to Do: Missing the April 15 US Tax Deadline

It is a stressful time for taxpayers if they miss the April 15 US tax deadline, given the penalties and fees that they could incur, but it’s important to remember that there are ways to minimize the consequences.

Whether they forgot to file, didn’t have much money to pay their taxes, or were simply unaware of their obligations, there are steps to get back on track and avoid escalating penalties.

Here’s what taxpayers can do if they miss the April 15 US tax deadline:

Table of Contents

Understand the Consequences of Missing the Deadline

Before diving into what to do next, it’s important to understand what happens when a taxpayer misses the April 15 tax deadline.

The IRS imposes two types of penalties: one for failing to file a tax return and another for failing to pay taxes. These penalties grow over time, so addressing the issue quickly can save money and stress.

The penalties:

Failure-to-File Penalty: This is the penalty for filing late, it is at 5% of the unpaid taxes per month, up to a maximum of 25% of the unpaid amount. If the return is over 60 days late, the penalty is the lesser of $485 for 2025 or 100% of the unpaid tax.
Failure-to-Pay Penalty: This is the penalty for late payment of taxes. It is at 0.5% of the unpaid taxes per month, up to a maximum of 25% and it continues to accrue monthly until the balance is finally paid off.
Interest on Unpaid Taxes: In addition to the penalties, the IRS also charges interest on unpaid taxes, which is calculated at the federal short-term rate plus 3%, compounded daily.

The good news is that if a taxpayer owed a refund and haven’t filed yet, there are no penalties for late filing—though they’ll want to file as soon as possible to claim the refund.

File the Tax Return as Soon as Possible

The most important step to take is to file the tax return as soon as possible. The longer a taxpayer wait, the more penalties and interest will accrue.

Filing After the Deadline

Taxpayers are free to use the IRS Free File program or tax software to prepare and submit the return.
If you they money, the IRS will calculate penalties and interest based on the filing date.

Request a Filing Extension (If Eligible)

Some taxpayers may be eligible to request an extension. While extensions must be filed by the original deadline, some individuals, such as US citizens living abroad or those affected by natural disasters, may qualify for an automatic filing extension beyond April 15.

How to Request an Extension: File Form 4868 (Application for Automatic Extension of Time to File US Individual Income Tax Return) to request an extension.

It is important to note that an extension gives more time to file, but it does not extend the time to pay taxes. Payment is still due by April 15.

What If a Taxpayer Can’t Pay in Full?

The IRS offers several payment options to help taxpayers settle their balance over time. Ignoring the debt will only make the situation worse, as penalties and interest will continue to accrue.

IRS Payment Options:

Installment Agreement: The IRS allows taxpayers to set up monthly payment plans for outstanding balances. They can apply for an installment agreement online, by mail, or by phone.
Short-Term Payment Plan: If they can pay off they balance within 120 days, taxpayers can request a short-term payment plan, which does not incur additional setup fees.
Offer in Compromise: If it is not possible to pay taxes in full and can demonstrate hardship, taxpayers can qualify for an Offer in Compromise, which allows them to settle your tax debt for less than the full amount owed.
Temporary Delay of Collection: If paying taxes would cause significant financial hardship, the IRS may temporarily delay collection efforts.

Seek Penalty Relief

If taxpayers have a good reason for missing the tax deadline, they may be able to request penalty relief from the IRS. The IRS offers relief in certain situations, especially if a taxpayer has been historically compliant with their tax obligations.

Types of Penalty Relief

First-Time Penalty Abatement: For taxpayers who’ve filed and paid their taxes on time for the last three years.
Reasonable Cause Relief: For taxpayers who missed the deadline due to circumstances beyond their control, such as a serious illness, natural disaster, or death in the family.

Taxpayers can call the IRS directly or submit a written request for penalty abatement. Be sure to provide documentation supporting the claim (e.g., medical records or evidence of a natural disaster).

In summary

Missing the April 15 US tax deadline can be daunting, but it’s not the end of the world. By taking immediate action—filing as soon as possible, setting up a payment plan, and seeking penalty relief if needed—taxpayers can minimize the financial and legal consequences.

For US. expats or individuals with complex tax situations, seeking professional advice can be especially beneficial. Most importantly, learn from the experience and take steps to stay organized and compliant with future tax obligations.