If you file your taxes late but do not owe any tax (meaning you are due a refund), there is generally no penalty or interest for filing late. However, filing late will delay your refund and extend the statute of limitations for audits
. The IRS failure-to-file penalty only applies if you owe taxes. It is calculated as 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax
. Since you do not owe taxes in this case, this penalty does not apply. In summary:
- If you don't owe taxes and file late: No penalty, but your refund will be delayed
- If you owe taxes and file late: Penalties and interest apply, starting with 5% per month failure-to-file penalty on the unpaid tax
Make sure to file your return within three years to claim any refund due; otherwise, the refund may be forfeited to the U.S. Treasury
