April 15th Has Passed … Will the IRS Penalize You for Filing Late?

The deadline for filing a personal federal income tax return in the United States has passed. April 15, 2025, was the deadline for filing your 2024 tax return with the Internal Revenue Service (IRS).  Those who did not do so on time may now be facing financial consequences that might grow month by month.

For many taxpayers, filing a tax return enabled them to claim a refund and get money back that was over-withheld or for refundable credits they were entitled to.  For others, it meant settling up by paying tax due to the federal tax authority.

If you were entitled to a refund and did not claim it, you have up to three years to do so.  For these returns that are entitled to a refund, no penalty is applied for filing late.  However, no interest will be paid since a return was not filed and the refund requested.  The Internal Revenue Code (IRC) Section 6611 states that interest only applies if the IRS does not issue a refund within 45 days of either the tax return’s due date or the date it was filed, whichever comes later.

If you have a debt or balance due and did not file for an automatic 6-month extension, the fine for not filing the tax return timely has now begun.  This fine is 5% of the unpaid tax for each month or part of the month in which the return is not filed.  This fine has a ceiling of 25% of the total due.  So, it is wise to file as soon as possible, even if you cannot make payment immediately.

There is also a penalty for not paying the taxes due on time. This penalty is 0.5% per month on the total outstanding amount due.  It also has a maximum of up to 25%. Cumulative interest in addition to the fine and penalty, also accrues at a variable rate that is adjusted every quarter.

Barry L Weller, EA is the president of Barry Weller & Associates with offices at 19 N Reading Ave, Boyertown, PA 19512 Phone (610) 367-8280   He is an enrolled agent, licensed to represent taxpayers before the IRS.