WHAT IF I HAVEN'T FILED AND DID'T FILE AN EXTENSION

Tax deadlines can sneak up on the best of us. Life gets busy, and sometimes filing your taxes slips through the cracks—especially if you're juggling business responsibilities, family obligations, or unexpected life events.

If you missed the filing deadline and didn’t file for an extension, don’t panic—but don’t ignore it either. Here's what you need to know and the steps you should take immediately:

1. File as Soon as Possible

The IRS imposes penalties for late filing and late payment. The failure-to-file penalty is typically 5% of the unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%. The longer you wait, the more those penalties add up.

Even if you can’t pay your full tax bill, filing now helps reduce the penalty and shows good faith.

2. Know the Consequences of Not Filing

• Penalties and Interest: In addition to the failure-to-file penalty, interest accrues on unpaid taxes.

• Loss of Refund: If you’re due a refund, you must file within three years to claim it.

• IRS Enforcement: Prolonged failure to file can lead to enforced collection actions like liens or levies.

• State Taxes: Don’t forget state deadlines—missing those can come with separate penalties.

  
  

3. You May Qualify for Penalty Relief

If this is your first time missing a deadline or you have a reasonable cause (like a serious illness, natural disaster, or another hardship), the IRS may grant penalty abatement. It’s worth requesting—especially for small business owners who faced unexpected challenges.

4. Set Up a Payment Plan if Needed

Can’t pay the full amount? You’re not alone. The IRS offers several payment plan options, including short-term and long-term installment agreements. File your return first, then apply for a plan to avoid further penalties and interest.

5. Don’t Wait for the IRS to Contact You

By the time the IRS reaches out, the penalties and interest may already be substantial. Taking action first gives you more control and options. It also demonstrates responsibility, which could be helpful if you request relief later.

Final Thoughts

Missing the deadline without an extension isn’t ideal—but it’s not the end of the world. What matters most is how quickly you act once you realize the mistake. The sooner you file, the more you can minimize the financial and legal consequences.

If you're unsure how to proceed, working with a tax professional can make a huge difference. They can help you file quickly, explore penalty relief, and set up a payment plan if necessary.