With the April 15 deadline, known as Tax Day, millions of taxpayers in the United States reach the end of the fiscal calendar without having filed their return yet. Although more than 88 million forms had already been submitted weeks earlier, a large number of people continue to complete the process in the final hours, with the possible risk of making mistakes or receiving penalties.
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Among those who have already filed their return, nearly 63 million have received refunds, with an average exceeding $3,500. For those who have not yet done so, the fastest way remains electronic filing, especially if direct deposit is chosen.
What happens if you don’t make it on time?
When it is not possible to meet the deadline, there is the option to request an extension using Form 4868, which extends the deadline until October 15. However, this measure only delays the filing of the return, not the payment of taxes.
This means that any amount owed begins to accrue interest from April 15. Still, requesting the extension is preferable to not filing anything, as it helps avoid more severe penalties.
Fines and penalties
The tax system includes penalties both for not filing and for not paying. The fine for not filing the 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 can equal the total owed or exceed $500.
On the other hand, the fine for not paying on time is smaller but also accumulative: 0.5% monthly on the outstanding balance, with a limit 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 is not possible to pay the full amount of taxes, the first recommended step is to file the return. From there, the Internal Revenue Service (IRS) offers different alternatives to manage 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 up to $100,000 can be covered within up to 180 days through short-term plans.
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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 costly than the interest accumulated with the IRS. Payments can be made by electronic transfer, check, cash, or card, although the latter option may involve high fees.
Last-minute recommendations
Before filing the return, it is essential to carefully review all the information. Taxpayers who have used professional services have the right to receive a complete copy of their return, which can be key in future audits.
Another recommendation is to adjust tax withholding through Form W-4 with the employer, which can help avoid outstanding balances in subsequent years.
Relevant tax changes in 2026
The 2026 fiscal year introduces several modifications that may affect the outcome of returns. Among them is the elimination of taxes on reported tips, a measure that especially benefits workers in the service sector.
Likewise, overtime pay now has partial tax relief, as only part of the additional income is exempt. New savings accounts have also been created for children born in 2025, with an initial government contribution and tax-free growth for 18 years.
For older adults, some tax benefits have been expanded, including additional exemptions and more favorable treatment for certain retirement incomes.
