I’m a Tax Professional: 5 Reasons People File Their Taxes at the Last Minute
Written by
Martin Dasko
Edited by
Cory Dudak
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While 2026 is a fresh start, that doesn’t mean many Americans won’t wait until the last minute to file their taxes. Even though it’s understandable that some drag their feet on completing their taxes, there are possible financial consequences that you’ll want to avoid.
According to a TurboTax survey from last year, 48% of Americans reported disliking or hating the tax filing process. The survey also found that a quarter of Americans confessed to procrastinating on their taxes simply because they didn’t enjoy doing them.
Reasons People File Their Taxes Last-Minute
GOBankingRates consulted with certified tax professionals to determine why people file their taxes at the last minute, and how it could affect them financially.
1. To Avoid the Paperwork
“Taxpayers with simple returns often wait to file because they may not care about a refund or balance due, and simply don’t want to do the paperwork,” said Morris Armstrong, founder of Morris Armstrong EA LLC, where he works as an EA, a license issued by the U.S. Treasury to represent taxpayers before the IRS. He found many are simply avoiding the tedious paperwork, so they defer their taxes until they can no longer avoid them.
Annette Nellen, a CPA and professor of Tax and Accounting at San Jose State University, pointed out that it’s just human nature to do other activities that have earlier due dates, and April 15 may feel like a long time away.
Meanwhile, Alison Eddings, a CPA and tax strategist, noted she works with many clients who become paralyzed by perfection and end up procrastinating on filing taxes. She has seen clients lose out on significant tax refunds because they weren’t willing to file a return that was 99.5% done.
2. Need Additional Documents
Armstrong noted that taxpayers may wait because they need additional documents to file.
“Many brokerage statements are subject to revision, especially those with foreign mutual funds and REITS,” he explained. There are many scenarios where one simply has to wait to get all their documents in order before filing their taxes correctly.
3. Returns Are Complex
Armstrong pointed out that another common reason for filing taxes at the last minute is the returns are more complex, often involving the dreaded Schedule K-1. He elaborated, “These are issued by entities such as partnerships, S corporations and trusts, and of course, the underlying return needs to be prepared first before the K-1s are issued.”
It was noted that these taxpayers are stuck in a unique situation as they wait for their documents to arrive. These often include multi-state returns and complex business situations.
4. Law Changes
Nellen explained that changes in the law may cause delays as people learn about them.
“For 2025, workers who earn tips and overtime might take some time to learn the basics of the rule to be sure they’re claiming as much as possible to lower their tax bill,” she explained. She found that some people may want to learn from their co-workers about what they figured out about the new rules before they file, because they don’t want to make a mistake.
5. Don’t Have the Money
Some people delay filing if they know they owe and lack the funds, according to Nellen. She further elaborated, “The IRS also explains options if someone can’t pay their taxes. So, filing late when you owe means you’ll have a failure to pay a penalty, which increases monthly, but won’t exceed 25% of the unpaid taxes.”
It’s common for individuals to delay filing their taxes if they’re concerned about securing the funds to make their payments.
How Filing Your Taxes Late Could Affect Your Money
There are two major issues with filing your taxes at the last minute.
1. You Can Experience Financial Hardships
The obvious issue with waiting to file your taxes is you delay receiving your refund. Armstrong added, “The later a person files, the longer they are without the refund, and that could create some hardships with their budgeting process.” This means you’ll have to wait to receive the funds, which could be an issue if you’re relying on them.
2. You Can Pay Hefty Fees
Armstrong noted the penalty for non-filing is 5% per month, and you may incur additional fees if you miss the deadline, emphasizing that preparing for the filing of taxes should begin January 1.
Planning ahead involves “tracking your expenses such as property taxes paid, mortgage interest paid, charitable donations and medical expenses paid, and then waiting for all those annoying W2s and 1099s to come in the mail or electronically,” he explained. If you don’t want to get hit with unnecessary fees, you’ll want to ensure that you complete your taxes ahead of time.
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