Failure-to-file penalties are heavier than failure-to-pay. File this week, even if you cannot cover the balance.
April 15, 2026 was yesterday. If you did not file your 2025 federal tax return or did not pay what you owe, penalties and interest started accruing this morning. The action list below is ordered by what saves you the most money first.
File now, even if you cannot pay
The failure-to-file penalty is roughly ten times larger than the failure-to-pay penalty. Filing a return, even one that shows a balance you cannot cover today, stops the bigger meter. IRS Free File stays open on IRS.gov through October 15, 2026. Guided tax software is free for filers with 2025 adjusted gross income of $89,000 or less. Free File Fillable Forms are available at any income level for those comfortable preparing their own return. Commercial e-file providers also accept late returns.
If you expect a refund, there is no late-filing penalty. You do, however, have three years from the original deadline to claim the money. After that, the refund is forfeited.
Pay what you can today
Any partial payment reduces the principal that penalties and interest calculate against. The fastest methods:
- IRS Online Account at IRS.gov
- IRS Direct Pay from a checking or savings account
- Electronic Federal Tax Payment System (EFTPS) for businesses
- Debit card, credit card, or digital wallet through an IRS-approved processor
Businesses with multiple entities should use the Business Tax Account, which now covers partnerships, governments, and tax-exempt organizations in addition to corporations. Designated officials can see balances, make payments, and review history across all linked entities in one view.
Set up an online payment plan if you need time
Most individual taxpayers qualify for an online payment plan. Approval is instant, paperwork is zero, and you do not have to call the IRS.
- Short-term plan. Total balance under $100,000 in combined tax, penalties, and interest. Up to 180 days to pay in full.
- Long-term plan (installment agreement). Balance of $50,000 or less. Up to ten years, with direct debit to prevent missed payments.
Setup fees may apply. Interest and penalties keep running until the balance is paid, so the shortest plan you can afford is the cheapest plan. If the math does not work, an Offer in Compromise may let you settle for less than the full balance. The IRS Offer in Compromise Pre-Qualifier tool is the right first check. A temporary delay of collection is also available in genuine hardship cases.
Know when first-time abatement applies
If you filed and paid on time for the prior three years, the IRS will often waive a first failure-to-file or failure-to-pay penalty under administrative relief. It is not automatic. You or your representative has to request it in writing or by phone. Reasonable-cause relief is also available for circumstances outside your control such as serious illness, disaster, or records destroyed.
Do not hire a preparer who will not sign
If you are still looking for help, verify credentials. The IRS Directory of Federal Tax Return Preparers lists enrolled agents, attorneys, and Annual Filing Season Program participants. Preparers who refuse to sign the return are acting illegally and are a fraud indicator the IRS specifically warned about in its 2026 scam advisory.
What BCA clients should do
Do not respond to any IRS notice, late or otherwise, without advisor input if your situation is complicated. Prior year balances, multi-state exposure, missing records, or an existing installment agreement on a different tax year all change the optimal path. A straight late filing is rarely the best move when any of those apply.
BCA advisors handle the entire response: preparing the late return, choosing the right payment option, requesting first-time abatement when it applies, and corresponding with the IRS under power of attorney. Reach out today if you need help this week.
The worst move right now is inaction. Every day of delay compounds the cost.
Sources
- IRS Newsroom, Options for taxpayers who need help paying their tax bill (April 2026)
- IRS Newsroom, Actions taxpayers should take if they missed April filing and payment deadline (April 2026)
- IRS.gov Tax Debt Help tool
- IRS.gov Online Payment Agreement page
- IRS.gov Offer in Compromise Pre-Qualifier
- IRS.gov Administrative Penalty Relief page
- IRS.gov Directory of Federal Tax Return Preparers with Credentials and Select Qualifications