Look, it happens. You meant to hit "send" on that TaxAct or TurboTax dashboard back in April, or maybe you just didn't have the paperwork ready for the October extension. Life gets messy. Maybe you moved, or changed jobs, or—honestly—just forgot because the 2023 tax season felt like a blur. Whatever the reason, if you’re sitting here wondering about filing late taxes 2023, the first thing you need to do is breathe. You aren't going to jail tomorrow. But you do need to move fast because the IRS interest rates are currently sitting at their highest levels in years.
High rates mean that "tomorrow" is literally costing you more than "today."
The 2023 tax year—which covered income earned between January 1 and December 31, 2023—had a standard filing deadline of April 15, 2024. If you requested an extension, that gave you until October 15, 2024. If both those dates are in your rearview mirror, you are officially in the "late filer" camp. It's a crowded camp, believe it or not. Millions of people find themselves in this exact spot every single year.
Why filing late taxes 2023 feels scary (and why it shouldn't)
The IRS actually likes it when you come to them first. They really do. Most of the horror stories people hear about the "tax man" coming for their house usually involve years of active evasion, not someone trying to catch up on a missed 2023 return. The IRS considers you a "non-filer" right now. Their goal isn't to punish you into bankruptcy; it's to get the data they need to settle the books.
There is a massive difference between filing late and paying late.
If you're owed a refund, there is actually no penalty for filing late. Zero. The IRS is basically holding your money for you, interest-free, and they aren't going to complain if you take your time asking for it back. However, you only have a three-year window to claim that refund. After that, the money belongs to the U.S. Treasury. For your 2023 return, that clock is ticking toward 2027.
But let's be real: most people who are stressed about filing late taxes 2023 are stressed because they think they owe money.
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The math of the late filing penalty
If you owe the IRS, the penalties come in two main flavors: Failure to File and Failure to Pay. They sound similar, but the Failure to File penalty is way more aggressive. It’s generally 5% of the unpaid taxes for each month or part of a month that a tax return is late. This maxes out at 25%.
The Failure to Pay penalty is much smaller—usually 0.5% per month.
Wait. Think about that for a second.
The penalty for not sending in the paperwork is ten times higher than the penalty for not having the cash. This is the biggest mistake people make. They think, "I can't pay the $2,000 I owe, so I just won't file the return until I have the money." That is a terrible move. You’re better off filing the return today to stop the 5% monthly clock and then dealing with the payment side of things later.
Even if you have $0 in your bank account, send the 2023 return. Just do it.
Getting your 2023 paperwork together (again)
Remember 2023? It feels like a lifetime ago. To get this done, you’re going to need your W-2s, 1099s from freelance gigs, and those 1099-INT forms from your bank. If you lost them, don't panic. You can request a "Wage and Income Transcript" from the IRS website. It shows everything that was reported to them under your Social Security number.
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- Check your "Get Transcript" tool on the IRS.gov site.
- Look for 1099-K forms if you sold stuff on eBay or Etsy (the threshold was still $20,000 for 2023, though many platforms sent them anyway).
- Find your 1098-T if you were a student.
- Don't forget the 1095-A if you had Marketplace health insurance.
If you’re missing a W-2 from a job you left, you can try contacting the employer, but the IRS transcript is usually the path of least resistance. It's the "official" version of your income anyway.
The 2023 Standard Deduction
For the 2023 tax year, the standard deduction jumped up quite a bit to account for inflation. For single filers, it was $13,850. For married couples filing jointly, it was $27,700. If your total itemized deductions—mortgage interest, state taxes, charitable gifts—don't beat those numbers, don't waste time hunting for every $10 receipt from Goodwill. Just take the standard deduction and get the return filed.
How to actually submit the 2023 return now
You can't usually just use the "Free File" software once the main deadlines pass, but many commercial software programs like H&R Block or FreeTaxUSA still allow you to prepare prior-year returns. You might have to print it out and mail it, though.
Yes, paper. Snail mail.
If you have to mail it, use Certified Mail with a Return Receipt. It’s the only way to prove to the IRS that you actually sent it if it gets lost in a processing center pile. If you're working with a CPA or an Enrolled Agent, they can often e-file 2023 returns even now, which is much faster and less prone to human error at the IRS data entry level.
Dealing with the "I can't pay" problem
If you finish your filing late taxes 2023 process and realize you owe $5,000 you don't have, you have options. The IRS offers installment agreements. You can basically set up a monthly payment plan that lasts up to 72 months.
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There's also something called "Offer in Compromise," but honestly? That's really hard to get. It’s for people in true financial hardship, not just someone who had a bad year. Most people will end up on a Payment Plan (Form 9465). It stops the more aggressive collection actions like wage garnishments or bank levies.
The "First-Time Abate" loophole
Here is a pro tip that most people don't know about. If you have a clean record for the three years before 2023—meaning you filed on time and didn't have penalties—you can ask for Administrative Waiver or "First-Time Abate."
You don't even need a "good" excuse. You just call the IRS after you get the penalty notice and ask them to remove the Failure to File and Failure to Pay penalties because you've been a good taxpayer in the past. They won't remove the interest (the law doesn't let them), but they can wipe out hundreds or thousands of dollars in penalties. But you can only do this after you’ve filed the return and paid the base tax (or set up a plan).
What about state taxes?
Don't forget that your state wants its cut too. Most states follow the federal timeline, but their penalties can be even more annoying. Some states have "amnesty" programs, but those are rare. Usually, if you're filing late taxes 2023 for the feds, you need to do the state return at the same time. Many state tax departments are smaller and actually more aggressive than the IRS because they don't have the same budget for customer service.
Concrete steps to finish this week
Stop overthinking. The longer you wait, the more the interest compounds. Interest on underpayments is currently around 8% annually, compounded daily. That's a high-interest loan you didn't sign up for.
- Download your transcripts. Go to IRS.gov and see exactly what they know about your 2023 income. This prevents "matching" errors later.
- Choose your weapon. Decide if you’re going to use DIY software, print and mail, or hire a local tax pro. If you're nervous, hire a pro. They speak "IRS-ese" and can help with the penalty abatement.
- File it even if it's "wrong." It's better to file an accurate-as-possible return now and amend it later with a 1040-X than to wait another six months for one missing document. Filing stops the 5% monthly penalty.
- Pay what you can. Even $50 sent with the return shows "good faith." It reduces the principal amount that interest is calculated on.
- Wait for the bill. Once the IRS processes the 2023 return, they will send you a notice (usually a CP14) telling you exactly what you owe in penalties and interest.
- Call for the First-Time Abate. Once that notice arrives, call the number on the top right. Ask specifically for a "First-Time Abatement" for the 2023 tax year.
If you're owed a refund, you're looking at a nice little payday with some interest added by the IRS. If you owe, you're looking at a manageable monthly payment. Either way, the "not knowing" is usually way worse than the actual reality of the paperwork. Get the 2023 taxes off your "to-do" list so you don't have this hanging over your head when the next tax season rolls around. It’s a weight off your shoulders that you didn't realize you were carrying.