The IRS applies late penalties and interest on a case-by-case basis and will send a separate bill if penalties apply.
Because the IRS has the last word on penalties, we can't calculate the exact amount if your return is late. But the info below will give you an idea of what to expect in a worst-case scenario (courtesy of IRS Tax Topic 653).
There are two types of fees that may apply, plus interest on any unpaid taxes:
- Late filing penalties apply if you owe taxes and didn't file your return or extension by April 15, 2024, or if you filed an extension but failed to file your return by October 15, 2024.
- The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%.
- If you file more than 60 days after the due date, the minimum penalty is $485 (for tax returns required to be filed in 2024) or 100% of your unpaid tax, whichever is less.
- Late payment penalties apply if you didn't pay taxes owed by April 15, 2024, regardless of whether you filed an extension or not.
- The late payment penalty is 0.5% (1/2 of 1%) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%.
- For any month(s) in which both the late-payment and late-filing penalties apply, the late filing penalty will be reduced by the amount of the late payment penalty applied in that month. For example, instead of a 5% late filing penalty for the month, the IRS would apply a 4.5% late filing penalty and a 0.5% late payment penalty.
- Interest (compounded daily) starts accumulating on unpaid taxes one day after the due date of the return, until the bill is fully paid off. The interest rate is the federal short-term rate plus 3%.
You won't face a penalty if:
- You file by October 15, 2024 provided you filed an extension and paid your tax bill by April 15, 2024, or
- You're getting a tax refund.
- However, you must file your 2023 taxes by April 15, 2026 (or October 15, 2026 if you filed an extension). After that, any unclaimed tax refunds get turned over to the U.S. Treasury.
Example: Let's say you didn't file your return by the April 15, 2024 deadline and you owe the IRS an additional $1,000.
Scenario 1: You file an extension on or before April 15, 2024 and pay your $1,000 bill on April 25 (10 days late). Your penalty would be $5 (the 0.5% late-payment penalty applied to $1,000), plus another dollar or so for the interest.
Scenario 2: You didn't file an extension, and you file your return on April 25 (10 days late) along with your $1,000 payment. Your penalty would be $50 (the 5% late-filing penalty applied to $1,000), plus another dollar or so for the interest.
What if I submitted my return before October 15, 2024, but it was rejected?
You have through October 20, 2024 to fix and resubmit your return to the IRS without being subject to late filing fees.
What if I miss the October 20 deadline to resubmit my 2023 rejected return?
You can still resubmit your rejected return through November 15, 2024 9PM PT, but your return could be subject to late filing or payment penalties.
What if I miss the November 15 e-file deadline to resubmit my return?
No worries, you can print and mail your return, but late penalties may apply. Unfinished 2023 TurboTax Online returns can be transferred to the TurboTax CD/download software for paper-filing.
