Today is the last day to file your taxes: Here’s what the IRS will do if you don’t
Tax season ends on April 15. Here’s what penalities you could be charged if you failed to file your return by the deadline.
This year, tax season began in late January, and since then, the Internal Revenue Service (IRS) has been receiving and processing millions of returns for tax year 2024.
The deadline for filing is April 15 unless you have been granted or applied for an extension.
A free extension, which applies only to one’s return and not any taxes owed, can be requested, which postpones the due date to October 15. In cases where natural disasters, like the fires that took place in Southern California in January, could lead to delays in filing, the IRS will offer residents an automatic extension.
If no extension has been requested or granted, taxpayers are subject to fines and penalties on taxes they owe. The longer one goes without paying, the higher the fees will grow.
Late filing of returns and payment of taxes are not the only cases where the IRS will impose penalties.
Here are the types of fines levied by the IRS:
- Fine for information return
- Penalty for not submitting the tax return
- Penalty for non-payment
- Accuracy-related fine
- Penalty for erroneous refund or credit claim
- Penalty for failure to comply with deposit requirements
- Fines to the tax preparer
- Penalty for rejected check or other form of payment
- Penalty on corporations for underpayment of estimated tax
- Penalty on individuals for underpayment of estimated tax
- Fine for declaration of international information
Source: IRS
Penalties for not filing the return or paying taxes
The penalty for not filing the return, on time is 5% of the unpaid taxes each month. Though a higher percentage than many might think, many workers do not owe taxes to the IRS when they file, as their employer takes out more than enough each month, with some of these funds being returned as a refund.
This fine begins to accumulate one day after the deadline until it reaches 25% of the taxes owed. If you do not pay your taxes before the due date, the monthly penalty is 0.5% of the unpaid taxes.
Time is running out to claim your refund from 2021. Today is the deadline to file to avoid your refund going unclaimed. Visit here: https://t.co/9zaP8nSc3h pic.twitter.com/DhNoNrJnrk
— IRSnews (@IRSnews) April 14, 2025
If both fines apply for not filing the tax return and non-payment of taxes, 5% of the amount will be the total payment.
If you file your return 60 days after the April 15 deadline or the October 15 extension date, the fine will be $480, or you will have to pay 100% of taxes owed if the amount is less than $480.
The IRS also charges interest on penalties. Interest for underpayments is set quarterly, but interest is calculated daily. Nonpayment interest rates for the first quarter of 2024, from January to March, are 8% for underpayments.
How do I know if I owe the IRS a fine?
When the IRS imposes a penalty, the tax agency sends a notice or letter by mail to your address. This will give you information about the penalty, the reason for the charge, and what you should do next.
Although the recommendation is to file the return and pay taxes as soon as possible, the penalty for not filing the return is much greater than the penalties for non-payment of taxes, so filing is essential.
For more information and to learn about other types of fines, visit the penalties section of the IRS website.
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