Missed the tax deadline and owe tax? File by June 14 to avoid higher late-filing penalty.

WASHINGTON —Adapted from IRS Newswire IR-2018-133

Taxpayers who owe federal income tax and file their return more than 60 days after the deadline will usually face a higher late-filing penalty. For that reason, the Internal Revenue Service urges affected taxpayers to avoid the penalty increase by filing their return by Thursday, June 14.  

Ordinarily, the late-filing penalty, also known as the failure-to-file penalty, is assessed when a taxpayer fails to file a tax return or request an extension by the due date. This penalty, which only applies if there is unpaid tax, is usually 5 percent for each month or part of a month that a tax return is late.  The late-filing penalty will stop accruing once the taxpayer files.  

However, if a tax return is filed more than 60 days after the April due date (or more than 60 days after the October due date if an extension was obtained) the minimum penalty is either $210 or 100 percent of the unpaid tax, whichever is less. This means that if the tax due is $210 or less, the penalty is equal to the tax amount due. If the tax due is more than $210, the penalty is at least $210.

In addition, the IRS urges taxpayers to pay what they owe to avoid additional late-payment penalty and interest charges. The late-payment penalty, also known as the failure-to-pay penalty, is usually ½ of 1 percent of the unpaid tax for each month or part of a month the payment is late. Interest, currently at the rate of 5 percent per year, compounded daily, also applies to any payment made after the original April 18  deadline.

After a return is filed, the IRS will figure the penalty and interest due and bill the taxpayer. Normally, the taxpayer will then have 21 days to pay any amount due.

Taxpayers can use their online account to view their amount owed, make payments and apply for an online payment agreement. Before accessing their online account, taxpayers must authenticate their identity through the Secure Access process.

Penalty relief may be available

Taxpayers who have a history of filing and paying on time often qualify to have the late filing and payment penalties abated. A taxpayer usually qualifies for this relief if they haven’t been assessed penalties for the past three years and meet other requirements. For more information, see the First-Time Penalty Abatement page on IRS.gov.

Even if a taxpayer does not qualify for this special relief, they may still be able to have penalties reduced or eliminated if their failure to file or pay on time was due to reasonable cause and not willful neglect. Be sure to read the penalty notice carefully and follow its instructions for requesting this relief.

Payment options

Many taxpayers delay filing because they are unable to pay what they owe. Often, these taxpayers qualify for one of the payment options available from the IRS.

Special filing deadline rules apply to members of the military serving in combat zones, taxpayers living outside the U.S. and those living in declared disaster areas. For those who qualify, these special deadlines affect any penalty and interest calculations. Visit IRS.gov for details on these special filing rules.