What to do if you missed the tax filing deadline

Jo Willetts, EA

Director, Tax Resources

Published on: June 13, 2023

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If you missed the 2023 tax filing deadline, here are some practical steps and valuable information on how to make your way through the situation with the least amount of stress, penalties, and fees.

Missed the tax filing deadline?

We know life gets complicated. If you weren’t able to file your taxes by this year’s deadline, we can help to give a wide-lens snapshot into what the implications are and how you can get yourself back on track.

What were the dates to file for this year?

The last day to timely file taxes for the 2022 tax year was April 18, 2023. However, you could have filed an extension that would give you another six months, until October 16, 2023. Regardless of the extension on your forms, you still would need to pay your taxes or set up a payment plan by April 18.

One step at a time

First, take a deep breath. We know that tax time is stressful and sometimes life can make it difficult to do everything you need to do. The sooner and more quickly you can correct the situation, the better. The first step should be reaching out to a tax professional to get a full picture of what you’ll need to do to help avoid paying more penalties and fees.

In assessing the situation, gather all of the pertinent tax information that you’ll need. This may be W-2s for employees or 1099s for people who are independent contractors, self-employed, or have investment income. Any other forms related to childcare, health care coverage and other important documents will be necessary too. A Tax Pro can help you with finding all your necessary documents.

The sooner you file, the less you’ll owe in penalties

Sometimes it’s best to rip the Band-Aid off as quickly as possible. Taxpayers who may owe, but missed the deadline without requesting an extension, should file as soon as possible to limit penalties and interest.

If you owe and don’t file on time, the IRS imposes two forms of penalties. When there is a balance due, you are subject to the Failure to File penalty, which is normally 5% of your unpaid tax. This penalty won’t exceed 25% of your unpaid taxes.

Then there’s the Failure to Pay penalty, which is usually 0.5% of your unpaid tax. The IRS calculates the Failure to Pay Penalty based on how long your overdue taxes remain unpaid. Unpaid tax is the amount of taxes left after subtracting amounts paid through withholding, estimated tax payments and allowed refundable credits. The Failure to Pay penalty will not exceed 25% of your unpaid taxes. During the period when you owe both penalties, they are combined so they don’t exceed a total of 25% per month. Penalties are assessed every month, or partial month, until you file your return and pay your taxes.

And on top of these penalties, you’ll owe interest. Because of this, if you think you’ll owe, you should file your tax return as soon as possible and work out a payment plan if you’re unable to pay the lump sum. A tax professional will know how to get you through this with the least amount of stress.

An extension to file isn’t an extension to pay

It’s critical to note that an extension to file is not an extension to pay. An extension to file provides an additional six months with a new filing deadline of October 16. Penalties apply to taxes owed after April 18, and the IRS charges interest on tax and all penalties until you pay the balance in full.

Filing and paying as much as possible are crucial, because the late-filing and late-payment penalties add up quickly. The sooner you connect with a tax professional about your best options and file, the easier it will be in the long-term.

Payment plans

The IRS has many options, including payment plans. Even if you can't afford to immediately pay the full amount of taxes owed, you should still file a tax return to reduce possible late-filing penalties. The IRS offers a variety of options for taxpayers who owe the IRS but cannot afford to pay.

Paying electronically

If you owe taxes, you can pay quickly and securely via your IRS Online Account, IRS Direct Pay, or you can apply online for a payment plan (including an installment agreement.)

If you pay electronically, you’ll receive immediate confirmation when you submit their payment. With Direct Pay and the Electronic Federal Tax Payment System (EFTPS), you can receive email notifications about your payments. A Jackson Hewitt Tax Pro can help you set these up.

First-time penalty abatement

You may qualify for penalty relief if you have filed and paid timely for the past three years and meet other important requirements, including paying or arranging to pay any tax due. For more information, work with your tax professional who can guide you through the rules around first-time penalty abatement.

Frequently asked questions

If you filed your taxes, but now need to make changes, you can file an amended return, using Form 1040-X, Amended U.S. Individual Income Tax Return. You should amend your return if you reported certain items incorrectly on the original return, such as filing status, dependents, total income, deductions, or credits.

The IRS notes that you don’t usually have to amend a return because of math errors that were made, because the IRS usually corrects them. They also note that you won’t typically need to file an amended return because you forgot to include forms, such as W-2s or schedules, when you filed. The IRS will normally request those forms from you. A tax professional can help guide you through the right next steps and can help you avoid needing to submit an amendment in the future.

Often, taxpayers are worried that filing an extension will trigger an audit, but this is not the case. If an extension is filed properly, it can help you gather all the pertinent tax documents, so that there may be less chance of an error if you don’t have everything you need by the deadline.

Always work with one of our Tax Pros when making key decisions, and feel free to ask all the questions that may come to mind. They are there to answer those questions and put you at ease.

If you choose not to file a return because you feel you don’t earn enough to meet the filing requirement, you may miss out on receiving a refund due to potentially eligible tax credits.

The most common examples of these refundable credits are the Earned Income Tax Credit and Child Tax Credit Taxpayers often fail to file a tax return and claim a refund for these credits and others for which they may be eligible.

The IRS doesn’t impose a penalty for filing after the April 18, deadline if a refund is due. However, some states do charge a penalty for late filing, even when there is a refund due. You can talk to one of our Tax Pros about your options if you feel you’re in this boat.

For 2022 tax returns, you may automatically qualify for extra time to file and pay taxes due without penalties and interest, if you are among these groups:

Members of the military who served or are currently serving in a combat zone. You may qualify for an additional extension of at least 180 days to file and pay taxes.
Support personnel in combat zones or a contingency operation in support of the Armed Forces. You may also qualify for a filing and payment extension of at least 180 days.
Certain disaster victims. Those who qualify have more time to file and pay what they owe.
If you live outside the United States, are a U.S. citizen or resident alien who lives and works outside the U.S. and Puerto Rico, or an active-duty military member stationed or deployed outside of the U.S but not in a combat zone, you may qualify for a two-month filing and payment extension. The IRS will charge interest on any taxes still owed after the original due date.

Let us help you navigate tax complexities

If you’re looking for assistance with navigating the complex United States tax system, stay informed and stay on top of your taxes by locating one of our offices near you. Our Tax Pros are happy to answer any questions and concerns you may have about filing late and help you avoid filing late in the tax years to come.

About the Author

Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 35 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate.

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