What Happens If I Miss the Tax Deadline?

Author: PGL3 Services LLC |

Blog by PGL3 Services LLC

Updated as of April 16, 2025

Penalties & Ballooning Balances Loom

Expecting a Refund?

You're in luck — if you're owed a refund, you have until April 15, 2028 to file your 2024 return and claim it. No penalties apply for late filing if you’re due a refund.

Expecting to Owe?

If you owe taxes and missed the deadline, here’s what happens:

If You Filed an Extension

  • You have until October 15, 2025 to file your return.
  • BUT: You still must pay your estimated tax by April 15 to avoid penalties.

Penalties if payment was not made:

  • Failure to Pay Penalty: 0.5% of the unpaid tax per month, up to 25% max
  • Interest on Unpaid Taxes: 7% interest (Q2 2025), compounded daily

If You Did NOT File an Extension

You are subject to both penalties:

Penalty Type Rate Max Cap
Failure to File 5% per month 25%
Failure to Pay 0.5% per month 25%
Combined Penalty 4.5% + 0.5% = 5% 25%

💡 When both penalties apply in the same month, the IRS reduces the Failure to File penalty to 4.5% so the total does not exceed 5%.

Interest Accrues Daily

  • Rate: 7% annually (Q2 2025)
  • Applied daily to unpaid tax balances
  • Begins after April 15, regardless of extensions

Next Steps

  1. Gather your tax documents
  2. File your return ASAP to stop the clock on penalties
  3. Pay what you can to reduce interest and penalties
  4. Request penalty relief if you're eligible

IRS Disaster Relief & Penalty Waiver Info: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

IRS Resources

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