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Filing Deadlines, Penalties & Interest — Quick Guide

For TY2024 returns due in 2025 • Married Filing Jointly examples included

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Filing Deadline April 15, 2025

  • General rule: 15th day of the 4th month after year-end.
  • If the date falls on a weekend/holiday, it’s due the next business day.

This is the original due date; penalties/interest look back to this date.

Extension to File (Form 4868)

  • Automatic 6-month extension to file → October 15, 2025.
  • Not an extension to pay. Estimate and pay with the extension.
  • If you pay ≥ 90% by April 15 and pay the rest when you file, the Failure-to-Pay penalty is generally waived.

Failure-to-File Penalty (FTF)

  • 5% per month (or part of month) on unpaid tax, up to 25%.
  • > 60 days late: minimum is the lesser of $485 (2025) or 100% of the unpaid tax.
  • If fraud applies: 15%/month, up to 75%.
  • If both FTF and FTP apply in same month, FTF is reduced to 4.5% (combined 5%).

Failure-to-Pay Penalty (FTP)

  • 0.5% per month (or part of month) on the unpaid balance, up to 25%.
  • No penalty if no balance is due.
  • With a valid extension and ≥90% paid by April 15: usually no FTP if the remainder is paid when filing.

Interest

  • Charged on any unpaid tax from the original due date until paid.
  • Applies even if you file an extension; also accrues on penalties.
  • Rate = federal short-term rate + 3%, compounded daily, updated quarterly.
  • Example calculations below use 8% annually (illustrative).

Outside of U.S. Exception

  • U.S. citizen or resident whose main place of business or duty post is outside the U.S./PR (or on military duty outside).
  • Gets an automatic 2-month filing extension to June 16, 2025 (not an extension to pay).
  • May still file Form 4868 for an additional 4 months → October 15, 2025.

Estimated Payments (Form 1040-ES)

  • For income without withholding; helps avoid underpayment & late-payment penalties.
  • Quarterly due dates: April 15 • June 15 • September 15 • January 15

Penalty Quick Reference

TypeMonthly RateMaximumKey Notes
Failure-to-File 5% (4.5% if FTP also applies) 25% (75% if fraud: 15%/mo) > 60 days late → minimum lesser of $485 (2025) or 100% of tax due
Failure-to-Pay 0.5% 25% Waived with valid extension if ≥90% paid by Apr 15 and balance paid at filing
Interest Varies (e.g., ~8%/yr) — Compounded daily on tax and accrued penalties

Examples (using an illustrative 8% annual interest rate)

A) Owes $1,000, files & pays 3 months late (no extension)

  • FTF+FTP combined = 5%/mo × 3 = 15% → $150
    Breakdown: FTF 4.5%/mo = $135; FTP 0.5%/mo = $15
  • Interest ≈ $1,000 × (8% ÷ 12) × 3 ≈ $20
  • Total due ≈ $1,170

B) Your client: balance $9,054.52, files & pays 3 months late

  • FTF+FTP = 15% × $9,054.52 = $1,358.18
  • Interest ≈ $9,054.52 × (8% ÷ 12) × 3 ≈ $181.09
  • Estimated total ≈ $10,593.79

C) Filed on time, but pays 3 months late

  • FTP only: 0.5%/mo × 3 = 1.5% → $9,054.52 × 1.5% = $135.82
  • Interest ≈ $181.09
  • Total ≈ $9,371.43

D) Extension filed, paid 90% by Apr 15; remaining paid on Oct 15

  • Remaining 10% of $9,054.52 = $905.45
  • No FTP (≥90% paid with extension); No FTF (return filed by Oct 15)
  • Interest on $905.45 for ~6 months ≈ $905.45 × (8% ÷ 12) × 6 ≈ $36.22
  • Cost of deferral ≈ $36.22

E) >60-day minimum penalty

If a taxpayer owes $200 and files more than 60 days late, the FTF minimum is the lesser of $485 or 100% of the tax due. Here, the minimum = $200 — which is far higher than the normal 15% ($30) for three months late.

Interest rates change quarterly; these examples are educational and use a flat 8% annual rate for simplicity. Actual IRS computations use daily compounding.

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Penalty for Perjury (Fraud)

Knowingly filing or helping to file a false return (or aiding in fraud) is a felony. Maximum fine of $100,000 and/or up to 3 years in prison.

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