Know the penalties
| Penalty | General rule |
|---|---|
| Failure to file | 5% of unpaid tax for each month or part of a month the return is late, up to 25%. A minimum penalty applies if you are more than 60 days late. |
| Failure to pay | 0.5% of unpaid tax per month or part of a month, up to 25%. |
| Interest | Charged on unpaid tax and penalties from the due date; the rate is set quarterly. |
When both penalties apply, the failure-to-file penalty is reduced by the failure-to-pay amount for the same month, so filing on time (even if you cannot pay) reduces the total cost. See IRS Topic 653.
If you are owed a refund
There is generally no penalty for filing late when you are due a refund, but you must claim a refund within three years of the original due date. After that, the refund is forfeited. If you have unfiled returns from several years, file them — some credits like the EITC require you to claim them within the three-year window too.
Step by step: filing a late return
- Gather the forms for that year. Use the forms and instructions for the specific tax year (IRS.gov has prior-year forms).
- Get missing income documents. Request copies from payers, or use an IRS wage and income transcript. See transcripts.
- Prepare the return. Software often supports the current and a few prior years; older returns may need to be filed on paper using the prior-year forms.
- File and pay what you can. Pay as much as possible, then see below for payment options.
- Keep proof of mailing if filing on paper (use certified mail).
If you cannot pay
File anyway. The failure-to-file penalty is much larger than the failure-to-pay penalty, and the IRS offers payment plans online. See what if you can’t pay your taxes.
Penalty relief
You can ask the IRS to waive penalties for reasonable cause (such as serious illness or natural disaster). Taxpayers with a clean compliance history for the prior three years may qualify for first-time penalty abatement. Read the notice you receive for how to request relief, or consult a tax professional.
What about unfiled returns for many years?
If you have several years of unfiled returns, the IRS generally expects the most recent six years. A tax professional can help you prioritize, and the Taxpayer Advocate Service and Low Income Taxpayer Clinics may help if you cannot afford one. Federal law has no statute of limitations on assessing tax if you never file.
State returns
State deadlines and penalties differ. File the state return for each year too, and check your state’s website. See state guides.
Frequently asked questions
What is the penalty for filing taxes late?
Generally 5% of the unpaid tax per month, up to 25%, plus a lesser failure-to-pay penalty and interest. If you are owed a refund there is usually no failure-to-file penalty.
How far back can I file a late return?
You can file a return for any past year. To claim a refund, you generally must file within three years of the original due date.
Should I file even if I can’t pay?
Yes. File on time or as soon as possible; the failure-to-file penalty is higher than the failure-to-pay penalty.
Official sources
- IRS: Filing past due tax returns
- IRS Topic 653: IRS notices, penalties and interest
- IRS: Online payment agreement
- IRS: Get Transcript
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.