Missing This Tax Deadline Costs Filers an Extra $435 on Average
Written by
Kerra Bolton
Edited by
Zuri Anderson
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As tax season ramps up, many Americans focus on what they owe.
However, focusing only on what’s owed can lead taxpayers to wait to file. The IRS filing deadline is usually Apr. 15, and missing it can trigger fast-growing penalties.
Even if you cannot pay yet, filing on time matters. Missing this tax deadline costs filers an extra $435 on average. GOBankingRates breaks down everything you need to know about these severe mistakes and how to avoid it.
When To File
The IRS filing deadline is typically Apr. 15 each year, and that date matters more than many people realize. Filing and paying are not the same thing.
A return can be submitted on time even if the full balance cannot be paid right away. Taxpayers can also request an extension, which gives more time to file but not more time to pay.
That distinction is where many costly mistakes begin.
Penalties Add Up
If a return is filed late, the IRS charges a failure-to-file penalty, and it adds up faster than many people expect.
It’s usually 5% of the unpaid taxes for each month the return is late, up to 25%. That means even a short delay can lead to a noticeable extra cost.
For many filers, those penalties can come out to about $435 on average, depending on the balance and how long the return is delayed.
Why People Miss
Many people miss the deadline each year due to illness, lost tax documents or unexpected events, according to TurboTax. Life happens, and tax filing can slip down the list.
There is also confusion around timing. Some taxpayers think they need to wait until they are fully ready or able to pay. Others are unsure how extensions work. That uncertainty can lead to delays that become more expensive over time.
How To Avoid
The simplest way to avoid this penalty is to file on time, even if the full payment is not ready. Filing by the deadline can reduce or prevent the largest fees.
Taxpayers who need more time can request an extension through the IRS. This provides additional time to file, but any taxes owed are still due by the original deadline.
Paying part of the balance can also help limit how much the total grows. For those who cannot pay in full, the IRS offers payment plans that allow the remaining balance to be paid over time.
Bottom Line
The first step to avoiding the penalty and saving $435 is filing on time.
Submitting a return by the deadline keeps penalties lower and leaves more room to handle payment over time. In some cases, taxpayers who do not file may also miss out on refunds they are owed, according to the IRS.
For those who are not ready to pay in full, the most useful next step is to file the return or request an extension before the deadline passes.
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