The Penalty for Late Filing

The penalty for filing late is steeper. Like the failure-to-pay penalty, it’s a percentage of any portion of your tax due that remains unpaid as of the filing date. The penalty is a percentage for each month or part of a month that your return is late.2

The clock begins ticking at your tax deadline, which would normally be April 15 unless you filed for an extension by that date. You’d have until October 15 before this particular penalty kicks in if you asked for an extension.

The penalty accrues until you file your return. The longer you wait, the worse it gets. You’ll pay at least $435 or a penalty equal to 100% of the tax you owe, whichever is less, if you fail to file within 60 days of the due date.3 

This penalty used to be $330, but it was increased $435 under the terms of the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which was passed in 2019

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