Ask Maxi · Your return
What happens if I file my return late?
Two separate penalties, and the one for filing late is far worse than the one for paying late.
Filing late generally costs 5 percent of the unpaid tax per month, up to 25 percent. Paying late generally costs 0.5 percent per month, up to 25 percent, plus interest. That is the whole argument for filing on time even when you cannot pay: you cut the penalty to a tenth.
An extension gives you six more months to file. It does not give you more time to pay — the estimate is still due in April, and interest runs from there.
If you are owed a refund, there is generally no late-filing penalty, but the refund itself expires three years after the due date.
First time late and otherwise compliant? There is a first-time penalty abatement that is worth asking for, and it is usually granted by phone.
Want us to handle this for you? Tax preparation →