Tax Day 2026: What to do if you don’t file your return on time and how to avoid last-minute penalties
The deadline for filing taxes in the United States is April 15, with millions of taxpayers still needing to submit their returns or sort out their tax issues
With the April 15 deadline — known as Tax Day — upon us, millions of taxpayers in the United States are reaching the end of the tax year without having filed their returns yet. Although more than 88 million forms had already been submitted weeks earlier, a large number of people continue to file at the last minute, running the risk of making mistakes or facing penalties.
Among those who have already filed their returns, nearly 63 million have received refunds, averaging more than $3,500. For those who haven’t filed yet, the fastest option remains electronic filing, especially if you choose direct deposit.
What happens if you don’t file on time?
If you are unable to meet the deadline, you can request an extension using Form 4868, which extends the deadline to October 15. However, this only postpones the filing of your return; it does not postpone the payment of taxes.
This means that any amount owed begins to accrue interest as of April 15. Even so, requesting an extension is preferable to not filing at all, as it helps avoid more severe penalties.
Fines and penalties
The tax system imposes penalties for both failure to file and failure to pay. The fine for failing to file a return can reach 5% of the tax owed for each month of delay, up to a maximum of 25%. If the delay exceeds 60 days, the minimum penalty may equal the total amount owed or exceed $500.
On the other hand, the fine for failing to pay on time is lower but also cumulative: 0.5% per month on the outstanding balance, with a cap of 25%. In both cases, interest is added to the total amount, increasing the debt over time.
Options for those who owe money
Even when it’s not possible to pay the full amount of taxes owed, the first recommended step is to file a tax return. From there, the Internal Revenue Service (IRS) offers various options for managing the debt.
One of the most common is the installment payment plan. Those who owe $50,000 or less can access long-term monthly payment agreements, while debts of up to $100,000 can be covered within 180 days through short-term plans.
It is also possible to request additional time to pay or consider other sources of financing, such as loans, which in some cases may be less expensive than the interest accrued with the IRS. Payments can be made by electronic transfer, check, cash, or credit card, although the latter option may involve high fees.
Last-minute tips
Before filing your tax return, it is essential to carefully review all the information. Taxpayers who have used professional services are entitled to receive a complete copy of their return, which can be crucial in the event of future audits.
Another tip is to adjust your tax withholding using Form W-4 with your employer, which can help prevent tax liabilities in future years.
Tax changes in 2026
The 2026 tax year introduces several changes that may affect tax returns. Among these, the elimination of taxes on reported tips stands out, a measure that particularly benefits workers in the service sector.
Additionally, overtime pay now qualifies for partial tax relief, as only a portion of the additional income is exempt. New savings accounts have also been created for children born in 2025, featuring an initial government contribution and tax-free growth for 18 years.
For seniors, certain tax benefits have been expanded, including additional exemptions and more favorable treatment for certain retirement income.
Sign up for our weekly newsletter to get more English-language news coverage from EL PAÍS USA Edition
