Missed the 2024 Tax Return Deadline? Here’s How TaxProNext Will Help You to File Late and Reduce Penalties

It's not too late to make amends if you missed the 2024 tax filing deadline of April 15. Even after the deadline, the IRS offers a variety of tools and alternatives to assist taxpayers with filing, lowering penalties, and setting up payments. You can save time, money, and stress by taking prompt action, regardless of whether you owe taxes or are eligible for a refund.

This blog breaks down the IRS guidance from IR-2025-162 and explains exactly what you need to do if you're filing late.

When you miss the tax filing deadline and owe money, you may face two types of penalties:

• Failure-to-File Penalty: 5% of the unpaid taxes for each month your return is late (up to 25%).
• Failure-to-Pay Penalty: 0.5% per month of your unpaid taxes (also up to 25%).
• Interest: Charged on unpaid taxes and penalties, compounded daily. The current interest rate is around 8% annually.

Bottom line: The longer you wait, the more you owe. File and pay as soon as possible to minimize charges.

Step 1: Know If You Have an Automatic Extension

Without applying, you can already be eligible for an automatic extension:

• American nationals or residents living overseas (automatic two-month extension)
• Combat zone military personnel (180-day extension plus time served)
• Victims of disasters in regions declared by FEMA

Verify your eligibility again on the IRS website if any of these apply to you.

Step 2: File Your Return Immediately (Even If You Can't Pay)

Filing your tax return, even if you can't pay the full amount, is the most important step. The failure-to-file penalty is 10x higher than the failure-to-pay penalty.

If you’re owed a refund, there’s no penalty for filing late, but you must file within three years to claim it.

Key Tip: Don’t wait for the money, file to stop the clock on major penalties.

Step 3: Pay What You Can Now

Paying part of what you owe can greatly reduce interest and late fees. The IRS allows you to make partial payments while you apply for assistance.

Ways to Pay:

• IRS Direct Pay (from your bank account)
• Debit/credit card (may have fees)
• IRS2Go mobile app
• By check or money order mailed with your return

Even a small payment helps reduce the balance that interest accrues on.

Step 4: Choose a Payment Plan

If you can’t pay the full amount right away, the IRS offers payment plans:

• Short-Term Payment Plan
  • For balances under $100,000
  • Up to 180 days to pay
  • No setup fee
• Long-Term Installment Agreement
  • For balances under $50,000
  • Up to 72 months (6 years) to pay
  • Setup fee: $31 (online with direct debit), $130 (by phone or mail)

Bonus: Once on a payment plan, your failure-to-pay penalty drops from 0.5% to 0.25% per month.

Step 5: Request Penalty Relief If Eligible

The IRS offers two common relief options:

• 1. First-Time Penalty Abatement
  • For those with a clean filing history (no penalties in the past 3 years)
  • Must have filed all current returns
  • Can be requested by phone or through your tax professional
• 2. Reasonable Cause Relief
  • For serious situations (natural disasters, illness, financial hardship)
  • Requires documentation or a written statement

Important: Relief applies to penalties, not interest. Interest continues until the full amount is paid.

Step 6: Monitor Your IRS Account

Create or log in to your IRS Online Account to:

• View balances and payments
• Check penalty and interest amounts
• Access letters and tax transcripts
• Apply for a payment plan

Final Checklist: What You Should Do Today

• 1. File your return right away (e-file or paper)
• 2. Pay what you can upfront to lower penalties
• 3. Set up a payment plan Set up a payment plan if needed
• 4. Request penalty relief if eligible
• 5. Adjust your W-4 for better tax planning next year
• 6. Check your IRS account for your current status

Pro Tips from TaxProNext

At TaxProNext, we help clients file late returns, reduce IRS penalties, and set up stress-free payment plans. Here’s what we recommend:

• Act within 30 days of the missed deadline for better relief odds
• File even if you don’t have the full amount, you'll avoid larger penalties
• Use professional help if you have multiple years of unfiled returns
• Watch for IRS letters and respond quickly to avoid enforcement

Need Help Filing Late Taxes?

Don’t let missed deadlines turn into IRS trouble. Our tax professionals at TaxProNext specialize in:

• Late return filing
• IRS payment plans and negotiations
• First-time abatement requests
• IRS letter responses and audits