What penalties and interest do U.S. expats face for missing each tax deadline?
The penalty depends on which deadline you missed. Late payment interest starts April 15, regardless of filing extensions, while failure-to-file penalties start after October 15 (or June 15 if you didn’t extend). FBAR penalties follow a separate schedule entirely. Knowing which clock is ticking helps you prioritize.
Penalty breakdown by deadline:
| Missed deadline | Consequence | Rate |
| April 15 (payment) | Interest on unpaid balance | Federal short-term rate + 3%, compounded daily |
| April 15 (payment) | Late payment penalty | 0.5% of unpaid tax per month, max 25% |
| June 15 (expat auto-extension) | Failure-to-file penalty begins if no Form 4868 filed | 5% of unpaid tax per month, max 25% |
| October 15 (extended filing) | Failure-to-file penalty begins if still unfiled | 5% of unpaid tax per month, max 25% |
| October 15 (FBAR) | Non-willful FBAR penalty | Up to $16,117 per violation (2025, adjusted annually) |
| October 15 (FBAR) | Willful FBAR penalty | Greater of $129,210 or 50% of account balance |
How the penalties stack:
- Late filing + late payment run simultaneously, but combined they cap at 5% per month (the filing penalty absorbs the payment penalty during overlap)
- Interest is separate and never capped
- FBAR penalties are independent of income tax penalties
Reducing the damage if you’re already late:
- File as soon as possible. The failure-to-file penalty is 10x the late payment rate.
- Pay what you can. Partial payment reduces the base for all percentage penalties.
- Consider Streamlined Filing if you qualify for penalty abatement on non-willful failures.
For the full deadline calendar, see our Tax Deadlines for Expats. For extension options, see Form 4868: Filing an Extension.
Last updated on April 29, 2026
