What happens if I file taxes late?

Filing late triggers a failure-to-file penalty of 5% of unpaid tax for each month or part of a month, up to 25%, plus interest. Late partnership and S-Corp returns carry a separate penalty for each owner every month, even when no tax is due. Filing as soon as possible stops the larger penalty growing.

First-time penalty relief may apply if your previous three years were clean.

Answered by Dushyant Hirwani · Updated November 3, 2026