If you file taxes late, you may face penalties from the IRS. The failure to file penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25% of your unpaid taxes. However, if you file a late return and are owed a refund, there is no penalty. If you owe taxes and file late, you should file a return as soon as possible and pay as much as possible to reduce penalties and interest. The sooner you file, the less youll owe in penalties. If you cant pay your taxes in full, you should still file your return and pay as much as you can to reduce penalties. If you expect a tax refund and have yet to file your tax return, the IRS won’t charge you a penalty for late filing.