How to file your taxes late

The statute of limitations for the IRS to audit your return won't start until you actually file your return. So, the sooner you file, the sooner the clock starts ticking. Some tax elections must be made by the due date, even if you have a refund coming. This applies to a very tiny percentage of taxpayers.

If you have a balance due: If you haven't paid all of the tax you owe by the filing deadline: You'll likely end up owing a late payment penalty of 0. You'll also likely owe interest on whatever amount you didn't pay by the filing deadline. Beware: No statute of limitations Regardless of whether you are due a refund or owe, there is another point to keep in mind: If you never file your return, there is no limit on how many years the IRS can go back to assess and collect tax.

What if I owe the IRS but can't pay? If you find yourself in this situation, you have a few options available, such as: credit card payments installment agreements "offers in compromise" You can also simply file your return and wait for the IRS to bill you, but don't be surprised if the bill includes interest and penalties. Can I pay my tax by credit card? These companies charge a convenience fee around 2. That fee is in addition to any interest and finance charges your credit card company may charge you.

Can I pay my tax in installments over time? If you find yourself owing more than you can afford, you should still file a return. Even if you don't enclose a check for the balance due, sending in your return protects you from the late-filing penalty that otherwise would keep digging you deeper into a hole. Attach a Form Installment Agreement Request to your tax return asking the IRS to set up a monthly payment plan to pay off what you owe.

You can also now apply online for the installment agreement. Does the IRS ever negotiate the amount owed? There are three circumstances under which the IRS is authorized to compromise: When there is doubt that the tax is correct. When there is doubt that you could ever pay the tax in full. When the tax is correct and you could pay it, but payment would result in an exceptional circumstance, economic hardship, or be unfair and inequitable.

You may need to complete the appropriate Form and should be prepared to provide other documentation and explanations as they are requested. Various options are available for accepted Offers in Compromise requests, such as a reduced total payment and scheduled monthly payments.

Defaulting on an accepted offer in compromise can result in the IRS filing suit against you and reinstatement of the original tax debt, plus interest and penalties.

By law we cannot remove or reduce interest unless the penalty is removed or reduced. For more information, see penalty relief. Call us at the toll-free number at the top right corner of your notice or letter or write us a letter stating why we should reconsider the penalty. Sign and send the letter along with any supporting documents to the address on your notice or letter.

You can avoid a penalty by filing and paying your tax by the due date. If you can't do so, you can apply for an extension of time to file or a payment plan. If you need more time to prepare your tax return, apply for an extension of time to file.

This does not grant you an extension of time to pay. A payment plan can help you pay over time. We hold income tax refunds in cases where our records show that one or more income tax returns are past due. We hold them until we get the past due return or receive an acceptable reason for not filing a past due return.

If you are self-employed and do not file your federal income tax return, any self-employment income you earned will not be reported to the Social Security Administration and you will not receive credits toward Social Security retirement or disability benefits. Loan approvals may be delayed if you don't file your return. If you cannot pay what you owe, you can request an additional days to pay your account in full through the Online Payment Agreement application or by calling ; no user fee will be charged.

If you need more time to pay, you can request an installment agreement or you may qualify for an offer in compromise. If you fail to file, we may file a substitute return for you. This return might not give you credit for deductions and exemptions you may be entitled to receive. You will have 90 days to file your past due tax return or file a petition in Tax Court.

If you do neither, we will proceed with our proposed assessment. When it comes to taxes, it is to your advantage to pay as much as you can as soon as possible; this will reduce the penalties and interest you owe over time. If you have remaining penalties and taxes that you cannot currently afford, you can:. Request a payment extension: You can use the Form to request an extension on your tax payments. You need to prove that paying your taxes would cause you undue hardship. Pro tip: Form needs to be filed by July 15!

Apply online for a monthly payment plan. The IRS offers short- and long-term payment plans that you can apply for online. They charge a small setup fee to get started, and you will still owe late penalties.

Pay what you owe by credit card.