The IRS provides some options if you are unable to file your tax return on time.
On this Tax Day, the IRS is promoting the customer service improvements the agency rolled out since receiving tens of billions in new funding dollars through Democrats’ Inflation Reduction Act.
From cutting phone wait times to digitizing more documents and improving the “Where’s My Refund” tool to show more account details in plain language, agency leadership is trying to bring attention to what’s been done to repair the agency’s image as an outdated and maligned tax collector.
The promotion also in part is meant to quickly normalize a more efficient and effective IRS before congressional Republicans threaten another round of cuts to the agency. So time is of the essence for both taxpayers and the agency this season.
“This filing season, the IRS has built off past successes and reached new milestones,” Treasury Secretary Janet Yellen said on a Friday call with reporters. “It’s showing that when it has the resources it needs, it will provide taxpayers the service they deserve.”
“Delivering tax season is a massive undertaking,” said IRS Commissioner Daniel Werfel. “We greatly appreciate people in many different areas working long hours to serve taxpayers as the tax deadline approaches.”
Below is more information on what happens if you miss the filing deadline, how to find out about your refund and more.
Is there a penalty if you miss the filing deadline?
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For most people, April 15 is the last day to submit tax returns or to file an extension and the IRS says it has received more than 100 million tax returns, with tens of millions more expected to be filed.
If you file your taxes after Monday's deadline, you may get hit with a Failure to File Penalty.
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According to the Internal Revenue Service, "The Failure to File Penalty applies if you don't file your tax return by the due date. The penalty you must pay is a percentage of the taxes you didn't pay on time."
The amount you may have to pay is calculated by how late you file your tax return, and the amount of unpaid tax as of the original payment due date. Interest can also be changed on a penalty. Here's a breakdown of the math.
You'll only have to pay a penalty if you aren't owed a refund. If you file late, and you are owed a refund, you won't have to pay a penalty, the IRS said.
What if you can't afford to pay your taxes in full?
According to the IRS, if you can't cover your taxes in full, you should still file your return by April 15 and pay what you can.
"Your interest and penalties are compounding quicker" if you owe taxes and don't file, Eric Bronnenkant, certified financial planner and head of tax at Betterment told CNBC.
The failure-to-file penalty is 5% of your unpaid taxes per month or partial month, capped at 25% of your balance due. By comparison, the late payment penalty, or the failure-to-pay penalty, is 0.5% per month or partial month, with a maximum fee of 25% of unpaid taxes.
If you aren't able to pay your taxes on the day they are due, you may qualify for an online payment plan (including an installment agreement) that allows you to pay off an outstanding balance over time, the IRS website says.
Once your online application is complete, you'll receive immediate notification of whether your payment plan has been approved.
I missed the deadline to file my taxes. Can I file for a tax extension?
Yes — but only as long as you request to file to file an extension by tax deadline day. Extension requests must be filed no later that the regular due date of your return, the IRS states on its website.
In other words, the request to file an extension, and the 2024 tax deadline is on the same day: This year, that day is Monday, April 15.
According to the IRS, an extension is simply a six-month extension to file your taxes. It does not grant you an extension to pay your taxes. You should still pay your taxes on time to avoid any penalties or interest, experts say.
You'll need to fill out Form 4868 in order to file for an extension. You can e-file that for free, using Free File.
Any individual tax filers, regardless of income, can electronically request an automatic tax-filing extension.
A tax extension gives you an additional six months to file your taxes, with the extension deadline falling on Oct. 15.
I already filed my taxes. Where's my refund?
You can use the Federal Government's "Where's my Refund?" tool to check on your refund here.
MORE: The IRS' ‘Where's my Refund?' tool got a major upgrade for 2024 tax season. Here's what's changing
You can check the status of your Illinois refund using a similar tool here.
According to the IRS, most refunds are issued within 21 calendar days.
"However, if you mailed your return and expect a refund, it could take four weeks or more to process your return," the IRS said.
According to the IRS, the average refund amount for 2024 is $3,050.
