For qualifying taxpayers abroad, April 15 is the date from which interest begins to accrue on unpaid federal income tax, even though the automatic two-month extension moves the filing and payment deadline to June 15. If tax remains unpaid after June 15, the failure-to-pay penalty generally begins to apply at 0.5% of the unpaid tax per month, up to 25%.
To understand the full range of annual due dates, review our Expat Tax Deadlines Guide at 1040 Abroad
➡️ See: Expat Tax Deadlines
Most expats don’t owe income tax thanks to exclusions, the foreign tax credit, or the child tax credit. But when unpaid tax exists, the IRS charges interest, adds a failure to pay penalty, and may issue a failure to file penalty if the return is late.
What Happens If You Miss the April 15 Deadline?
If you’re a qualifying U.S. taxpayer living abroad and don’t pay your federal income tax by April 15, interest will generally begin accruing on the unpaid balance. However, the automatic two-month extension gives qualifying taxpayers abroad until June 15 to file and pay before the failure-to-pay penalty generally begins. In short, paying by April 15 avoids interest; paying between April 15 and June 15 generally means interest accrues, but no failure-to-pay penalty applies.
If you expect a balance due each year, reviewing how estimated payments work can help you avoid penalties next year.
➡️ See: How to Make Estimated Tax Payments
You can make a payment toward your expected federal tax liability through IRS Direct Pay even if you haven’t finished your federal tax return.
What Happens If You Miss the June 15 Expat Filing Deadline?
If you qualify for the automatic two-month expat extension and miss the June 15 deadline without filing Form 4868, your tax return is generally considered late. If you also have unpaid federal income tax, the failure-to-pay penalty generally begins after June 15, while interest has already been accruing on the unpaid balance since April 15.
The failure-to-file penalty is generally 5% of the unpaid tax for each month or part of a month the return is late, up to 25%. The failure-to-pay penalty is generally 0.5% per month, also up to 25%. When both penalties apply in the same month, the combined penalty is generally limited to 5% for that month.
For returns due in 2026 that are more than 60 days late, the minimum failure-to-file penalty can be $525 or 100% of the unpaid tax, whichever is less. Filing and paying as soon as possible after June 15 can help prevent additional penalties and interest from accumulating.
For a complete guide to consequences and penalty types, explore our detailed FAQ:
➡️ See: Tax Penalties and Fines for US Expats
Do I Owe Penalties If I Don’t Owe Taxes but Missed Informational Forms?
Yes. Even if you have no federal income tax due, you may still face separate penalties for failing to file required international information returns on time.
These forms can include:
Depending on the form and circumstances, penalties can start at $10,000 per form, per tax year.
Can Expats Get an Extension After Missing the Deadline to File?
Qualifying taxpayers abroad who need additional time to file after June 15 must file Form 4868 by June 15. This extends the filing deadline to October 15—a further four months, or six months in total from the regular April 15 deadline. It does not extend the June 15 payment deadline.
Taxpayers abroad may also request an additional discretionary filing extension to December 15 by submitting a written request to the IRS before October 15.
➡️ Learn how it works: Extension to December 15 for Expats
These additional extensions apply only to filing. For qualifying taxpayers abroad, the automatic two-month extension allows payment through June 15 before the failure-to-pay penalty generally begins. However, interest on unpaid federal income tax accrues from April 15, and extensions to October 15 or December 15 do not provide additional time to pay.
How Do I Catch Up If I Missed the Deadline for Several Years?
If you have fallen behind on your U.S. tax filings and your non-compliance was non-willful, you may qualify for the IRS Streamlined Foreign Offshore Procedures if you meet the non-residency and other eligibility requirements.
➡️ Learn more: Streamlined Compliance Package
Eligible taxpayers who successfully use the Streamlined Foreign Offshore Procedures are generally not subject to:
- Failure-to-file penalties
- Failure-to-pay penalties
- Accuracy-related penalties
- Information return penalties
- FBAR penalties
However, any tax due and applicable interest must still be paid.
To qualify, you must submit three federal tax returns, six FBARs, and a certification explaining the facts and circumstances supporting that your non-compliance was non-willful.
What If I Owe Taxes but Can’t Pay My Full Tax Bill?
The IRS provides options for taxpayers who owe money or have IRS money due, including:
- Long term payment plan
- Installment agreement
- Monthly payments
- Penalty relief, including the IRS Automatic Exemption from Penalty (AEP) for eligible taxpayers
- Offer in compromise
In some cases, a long-term payment plan can last up to six years. One of the IRS offers for resolving tax debt may let qualifying taxpayers settle for less than the full amount owed through an Offer in Compromise. The IRS determines whether an Offer in Compromise is accepted based on your ability to pay.
Payment plans can make a tax debt more manageable and generally prevent enforced collection while an agreement is in effect, but penalties and interest usually continue to accrue until the balance is paid in full. For eligible individual taxpayers with an approved payment plan, the failure-to-pay penalty may be reduced from 0.5% to 0.25% per month. Other options, such as penalty relief or an Offer in Compromise, may be available depending on the taxpayer’s circumstances.
How Fast Should You File After You Missed the Deadline?
We can prepare your return within 2 weeks of receiving your information. Filing promptly can stop the failure-to-file penalty from continuing to increase. If you owe tax, paying as much as possible can also reduce the amount subject to ongoing interest and failure-to-pay penalties.
Failure-to-file penalties can continue while the return remains unfiled, while interest and applicable failure-to-pay penalties generally continue until the outstanding tax is paid.
Is It Too Late to Fix a Missed Deadline?
No. If you missed the tax, even the April 15 deadline or the June 15 expat deadline, it can still be resolved. Ignoring it leads to higher penalties and interest, a larger tax liability, IRS collections or wage garnishment, and even a tax lien, making the problem more expensive over time.
We can help you file a tax return, address unpaid tax, use an installment agreement, and get caught up on multiple tax years, which can be especially helpful for self employed expats and others with complex filings. Our specialists prepare returns quickly and help you resolve federal and state taxes with back-year filing help and payment arrangements using the most efficient IRS options available.
