May 17 Tax Deadline Explained: What Time Are Taxes Due? What If I File Late?

The deadline for filing individual tax returns in the U.S. is later than usual this year—Monday, May 17.

Earlier this year, the Internal Revenue Service pushed back the date and gave most taxpayers an extra month to file their 2020 returns due to the ongoing coronavirus pandemic.

"This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," IRS Commissioner Chuck Rettig said in March.

"Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."

Tax filing deadline

The IRS moved the deadline for filing individual tax returns from it usual date of April 15 to May 17. That means you have until 11:59 p.m. EST on Monday to file.

The agency said individual taxpayers could postpone federal income tax payments for the 2020 tax year to May 17 without penalties or interest, regardless of how much was owed. However, penalties would begin to accrue on unpaid balances from May 17.

Some taxpayers may have extra time to file their returns and pay any owed taxes. These include some disaster victims, taxpayers living overseas, certain military service members and eligible support personnel in combat zones.

Victims of storms, tornados and flooding in parts or all of five states this spring will have extra time to their file tax returns and make payments.

Those affected in Tennessee will have until August 2 to file various individual and business tax returns and make tax payments, the IRS announced last week. The same deadline applies to individuals and businesses in parts of Alabama.

All taxpayers in Texas, Oklahoma and Louisiana have until June 15 to file and pay, while taxpayers in parts of Kentucky have until June 30.

How to request an extension

The IRS says the most important thing for everyone with a tax bill due to do is to file their return by the end of the day on May 17, even if they can't pay in full.

They can request an extension to avoid higher penalties for failing to file on time, but extensions don't change the deadline for paying taxes that are due.

Those who need additional time can request an extension that allows individual taxpayers to file by October 15 by filling out Form 4868 through their tax professional, tax software or using the Free File link on the IRS website.

Visit IRS.gov/extensions for more details on how to apply for an extension.

Penalties and interest

If you can't pay your balance in full, the IRS advises taxpayers to pay what you can now and apply for an Installment Agreement to spread out the remaining balance.

If an individual taxpayer is owed a refund, there's no penalty for filing late, the IRS said. However, if federal income tax is owed and not paid by May 17, they can face penalties and interest.

Reasons for penalties include failure to file, failure to pay, failure to pay proper estimated tax and a dishonored check.

Penalties for failing to file tend to be higher than failing to pay taxes owed. According to the IRS, anyone who owes tax and waits until after the deadline to file will usually be charged a penalty of 5 percent of the unpaid tax required to be reported per month.

Some, such as the failure to pay penalty, are charged on a monthly basis, until the tax owed is paid in full.

For more details about penalties and interest, visit IRS.gov/penalties.

Penalty relief

Those who have been charged a penalty can contact the IRS by calling the number on their notice and explain why they couldn't file and pay on time.

Some taxpayers qualify to have their late-filing or late-payment penalties reduced or written off. This is done on a case-by-case basis, based on reasonable cause, according to the IRS. Acceptable reasons, if established, include: fire, casualty, natural disasters or other disturbances; inability to obtain records; and death or serious illness of the taxpayer or a member of their immediate family.

Taxpayers with a history of filing and paying taxes on time can get penalty relief under the First Time Abatement program.

Visit IRS.gov/penaltyrelief for details.

2017 tax refund deadline

May 17 is also the deadline for claiming tax refunds from 2017.

The IRS announced last month that 1.3 million taxpayers who did not fill out a 2017 Form 1040 income tax return are eligible for the payment, with half of the tax refunds estimated to be more than $865.

"The IRS wants to help taxpayers who are due refunds but haven't filed their 2017 tax returns yet," Rettig said in a statement. "Time is quickly running out for these taxpayers. There's only a three-year window to claim these refunds, and the window closes on May 17."

Visit IRS.gov/refunds for details.