Did you find it impossible to file your taxes on time for some reason?

The Internal Revenue Service (IRS) offers help and options for filing your 2023 taxes late.

To assist taxpayers facing difficulties, the IRS has important payment programs that can help those struggling to pay the amount owed and extraordinary penalty relief for first-time filers who qualify.

The IRS reminds people that paying what they can as soon as possible will limit penalties and interest charges, which can quickly add up under tax laws.

If a return is filed more than 60 days after the due date, the minimum penalty is $485 or 100% of the unpaid tax, whichever is less. The penalty rate for failure to pay is generally 0.5% of the unpaid tax due each month or part of a month until the tax is paid in full or until the penalty reaches 25%. The rate is subject to change. However, taxpayers can limit late payment penalties and interest charges by paying their taxes electronically.

File and Pay What You Can to Reduce Penalties and Interest

Taxpayers should file their tax returns and pay the taxes they owe as soon as possible to reduce penalties and interest. An extension to file a return is not an extension to pay. A filing extension provides an additional six months with a new deadline of October 15. Penalties and interest apply to taxes owed after April 15, and interest is charged on the taxes and penalties until the balance is paid in full.

Some May Qualify for Penalty Relief

Taxpayers who have filed and paid on time and have not been penalized in the past three years often qualify for a penalty reduction. Check out the First Time Penalty Abatement page on IRS.gov. You may still qualify for penalty relief if your late filing or payment was due to reasonable cause and not intentional neglect.

Having Trouble Paying? The IRS Has Options to Help

Taxpayers who cannot pay the total amount by the deadline should still file their tax return, pay what they can, and explore various payment options available for the remaining balance. The IRS offers several options to help them meet their tax obligations, including applying for an online payment plan.

Taxpayers can receive an immediate response of accepting or rejecting a payment plan without calling or writing to the IRS. Online payment plan options include:

• Short-Term Payment Plan: The total balance owed is less than $100,000 in combined taxes, penalties, and interest. Additional time of up to 180 days to pay the balance in full.
• Long-Term Payment Plan: The total balance owed is less than $50,000 in combined taxes, penalties, and interest. Pay in monthly installments for up to 72 months. Payments can be set up via direct debit (automatic bank withdrawal), eliminating the need to send a payment each month, saving on mailing costs, and reducing the chance of default. A bank account is required for balances between $25,000 and $50,000