If you missed the IRS’s October tax extension deadline, you’re not alone—and you’re not out of options. While missing the deadline can lead to penalties, interest, and IRS notices, it’s also a situation that can be brought under control with the right steps and timely guidance. At Moskowitz LLP, our tax resolution team helps individuals and businesses navigate these issues and minimize the consequences of filing late.
What Happens When You Miss the October Extension Deadline?
Missing the October filing deadline can cause an overwhelming amount of stress, but understanding what happens next can help you correct the issue. Once October date passes, the IRS treats your return as late, and the clock starts running on several consequences.
First, you’ll begin to incur a Failure-to-File penalty, which is one of the steepest penalties the IRS assesses. It generally amounts to 5% of the unpaid tax for each month your return is late, up to a maximum of 25%. If you also owe taxes, you’ll continue to accumulate interest, which actually began from the original tax deadline in April. Many people are surprised to learn that an extension only delays filing — not payment — so even if you filed for extra time, interest on unpaid taxes has been building since spring.
As time passes, the IRS may begin sending notices about the missing return or the outstanding balance. These letters typically start out as reminders but can progress into more serious warnings if the issue remains unresolved. Left unaddressed, the IRS can eventually take collection actions such as filing tax liens, garnishing wages, or levying bank accounts.
While the consequences are real, none of them are irreversible—especially if you act quickly.
The Good News: You Can Still File and You Can Still Reduce Damage
Missing the deadline does not mean you are ineligible to file, negotiate, or seek relief. In fact, the sooner you act, the more options you have.
Here’s what you should do:
1. File your return as soon as possible – Even if you cannot pay the balance due, filing the return stops the Failure-to-File penalty from growing.
2. Determine what you actually owe – Tax balances are often lower—or higher—than people assume. Getting an accurate number is crucial before addressing the IRS.
3. Explore Payment and Relief Options – Even if you can’t pay your full balance immediately, you still have several options for relief. Many taxpayers qualify for an installment agreement that allows them to pay their balance over time. Others may be eligible for an Offer in Compromise, which can reduce the total amount owed if they meet certain financial criteria. In some cases, penalties can be reduced or removed through penalty abatement, or the IRS may determine that you’re temporarily unable to pay and place your account in “Currently Not Collectible” status.
4. Avoid ignoring IRS letters – They won’t go away on their own. Each notice has important deadlines and missing them can escalate enforcement.
Why Acting Quickly Matters
Every month you wait adds more interest and penalties. For example, a $10,000 tax debt can grow significantly over the course of a year due to compounding penalties and interest.
The IRS also becomes more aggressive the longer you delay. Taking proactive steps shows good-faith compliance and opens the door to more favorable outcomes
Get Professional Help to Get Back on Track
If you’ve missed the October extension deadline, now is the time to protect your finances and regain control of the situation. The tax resolution attorneys, CPAs and enrolled agents at Moskowitz, LLP can:
- Evaluate your complete IRS account
- Prepare and file overdue tax returns
- Communicate with the IRS on your behalf
- Negotiate payment plans or settlements
- Seek penalty relief when appropriate
You don’t have to face the IRS alone.
Contact a Tax Resolution Services Professional
Moskowitz LLP can help you with strategies that may benefit your situation, and we can deal with the IRS on your behalf. Schedule a consultation with a tax resolution services professional by visiting our website or by calling us today at (888) 829-3325.
