It’s the April 15 tax deadline. You’re staring at the clock. Midnight is creeping closer. And maybe, you’re not going to make it.
First of all, take a breath. You’re not the only one.
But before you throw your hands up and walk away from your taxes completely, here’s exactly what happens if you miss the April 15 IRS deadline, and what you can do right now to reduce the damage.
Late Filing vs. Late Payment: Know the Difference
Let’s be clear: the IRS penalizes you differently depending on what you didn’t do.
- Late Filing Penalty: If you don’t file your return (or an extension) by April 15, the IRS hits you with a failure-to-file penalty. This is steep, 5% of the unpaid taxes for each month you’re late, up to 25%. It adds up fast.
- Late Payment Penalty: If you filed but didn’t pay everything you owe, you’ll still get penalized, but it’s smaller. This one’s 0.5% of your unpaid taxes per month, also up to 25%.
So here’s the golden rule: Always file, even if you can’t pay.
Can’t Pay? File Anyway, and File Form 4868 for an Extension
If you truly can’t finish your return by tonight, file Form 4868 before midnight. This gives you until October 15 to submit your full return. The extension only delays the paperwork, not the payment, but it eliminates the big filing penalty.
You can file Form 4868 for free using:
- IRS Free File (even if you owe)
- Tax software like TurboTax or H&R Block
- A tax professional
Even if you can’t pay your full tax bill today, pay something. Partial payments reduce interest and penalties and show the IRS you’re making a good-faith effort.
What If You Do Nothing?
You’ll face:
- The 5% monthly filing penalty mentioned above
- The 0.5% monthly payment penalty
- Interest on what you owe (currently around 8%)
- Eventually, collection notices or even wage garnishment if it drags on too long
In short: it gets expensive. Fast.
How to Fix It If You Already Missed the Deadline
Let’s say it’s April 16 or later and you missed everything. It’s not game over.
- File your tax return as soon as possible.
- Include Form 9465 to request a payment plan if you owe and can’t pay it all now.
- Call the IRS or use your IRS.gov online account to explore short-term or long-term payment options.
If you qualify for first-time penalty abatement (you filed and paid on time the last three years), you might even get penalties waived.
The worst thing you can do is ignore tax day altogether. If you’re running out of time, file something today, even if it’s just an extension. The penalties are far lighter, and the IRS is more flexible than you think, especially when you’re proactive.
Don’t panic. Just act.
