Missed the Tax Deadline? What Happens If You Filed Late for 2024 (and What to Do Now)

It’s October 17, 2025 — two days after the October 15 extended filing deadline — and if you haven’t yet filed your 2024 tax return, you’re officially late.
Don’t panic — but don’t ignore it, either. The IRS and California Franchise Tax Board (FTB) impose penalties for both failing to file and failing to pay, and those amounts can add up quickly.

At Velin & Associates, Inc., we help clients — from YouTubers and Shopify store owners to dentists, doctors, and high-net-worth individuals — understand what these penalties mean, how to minimize them, and how to get back on track fast.

The Failure-to-File Penalty

If you missed the deadline to file your 2024 return, the failure-to-file penalty applies.
This penalty equals 5% of your unpaid tax per month (or part of a month), up to a maximum of 25% of the unpaid amount.

Even being a few days late counts as a full month for penalty purposes.

Example:
A freelance video editor who owes $4,000 in taxes for 2024 and files one month late could owe an additional $200 (5% of $4,000). If they wait five months, the penalty caps at $1,000.

If your return is filed more than 60 days late, the IRS also applies a minimum penalty — the lesser of:

• 100% of the unpaid tax, or
• A flat dollar amount, which for 2025 is $510.

The Failure-to-Pay Penalty

Filing on time doesn’t protect you from another type of penalty: failure to pay.
If you didn’t pay your balance due by April 15, 2025, the IRS adds 0.5% per month (up to 25%) on the unpaid amount.

Example:
A Shopify seller owed $10,000 in April but didn’t pay until October. That’s six months late — adding roughly $300 in penalties (0.5% × 6 months × $10,000), plus interest.

This penalty continues to grow until the balance is fully paid.

What If You Filed an Extension?

Many taxpayers filed Form 4868, which grants an automatic six-month extension to file — moving the due date from April 15 to October 15, 2025.

However, that extension only applies to filing, not to payment.
You were still required to pay at least 90% of your tax liability by April 15 to avoid late payment penalties.

Example:
A TikToker estimated they owed $20,000 and paid $18,000 by April 15. They filed their return on October 14 and paid the remaining $2,000.
✅ No failure-to-pay penalty applies because they paid at least 90% by the original due date and the rest by the extended deadline.

What To Do If You’re Already Late

If today’s October 17 and you still haven’t filed, don’t wait any longer. Here’s what you can do:

• File immediately. The sooner you file, the smaller your failure-to-file penalty will be.
• Pay what you can. Even partial payments stop some of the interest and penalty growth.
• Set up a payment plan. The IRS offers installment agreements for unpaid balances.
• Work with a CPA. A professional can help you file correctly, request penalty relief (if eligible), and avoid future mistakes.

Can Penalties Be Reduced?

Sometimes, yes. The IRS may remove penalties if:

• You have a clean compliance history (no penalties in the last three years), or
• You had a reasonable cause for filing or paying late — such as illness, disaster, or unavoidable circumstances.

A CPA for online businesses, creators, and professionals can prepare your reasonable cause statement and communicate directly with the IRS on your behalf.

Why Work with a CPA Now

Filing late can be stressful — especially for freelancers, influencers, and small business owners juggling multiple income sources.
At Velin & Associates, Inc., we help:

• YouTubers and TikTokers properly report brand deals and sponsorships,
• Shopify and Amazon sellers reconcile income and expenses from multiple platforms,
• Doctors and dentists manage practice-related deductions, and
• High-net-worth individuals protect income through smart tax planning.

Whether you missed a deadline or want to prevent it from happening next year, we’ll make sure your filings are accurate, compliant, and optimized for savings.

Stay Proactive, Not Reactive

Every missed deadline costs more than money — it adds stress and risk.
By acting now, you can minimize penalties, protect your financial record, and position yourself for a smoother 2025–2026 tax year.

If you’ve fallen behind, don’t go it alone — our team is ready to help you file, pay, and plan smarter.

For more information about our tax planning services, contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org