Get to know the author
Connect on LinkedInLate payment means paying U.S. federal income tax after the applicable payment deadline. It can result in interest and an IRS failure-to-pay penalty, even when the tax return itself was filed on time.
Why it matters for U.S. expats
Qualifying Americans abroad receive an automatic extension until June 15 to file and pay. However, interest normally accrues on unpaid tax from the regular April deadline. Filing extensions beyond June 15 provide more time to submit the return, not more time to pay.
Common questions
1. When must U.S. expats pay their federal income tax?
Qualifying taxpayers abroad have until June 15 to pay without a failure-to-pay penalty. Paying after April 15 can still result in interest.
2. Does the automatic expat extension prevent interest?
No. Interest accrues from the regular April payment deadline, even when the automatic expat extension applies.
3. What is the IRS penalty for paying taxes late?
The failure-to-pay penalty is 0.5% of the unpaid tax for each month or partial month, up to 25%.
4. Does Form 4868 provide more time to pay?
No. Form 4868 extends the filing deadline to October 15, but does not extend the payment deadline.
5. Should expats file if they cannot pay their full tax bill?
Yes. Filing on time can prevent the separate and usually higher failure-to-file penalty. Pay as much as possible and consider requesting an IRS payment plan.
6. Can U.S. expats arrange an IRS payment plan?
Yes. Eligible taxpayers abroad can request a short-term payment plan or monthly installment agreement with the IRS.
7. Does an IRS payment plan stop penalties and interest?
Not entirely. Interest continues, but the failure-to-pay penalty may be reduced to 0.25% per month while an approved installment agreement is in effect.
8. Can the IRS remove a late-payment penalty?
Possibly. Penalty relief may be available through First Time Abate or when the taxpayer can demonstrate reasonable cause and good-faith efforts to comply.
Related forms
When to get help
Consider professional help if:
- You owe tax and cannot pay the full balance.
- You’ve received an IRS payment notice.
- Penalties and interest have been added to your account.
- You need help requesting a payment plan.
- You may qualify for penalty relief.
- You owe tax for more than one year.
Bright!Tax can calculate what you owe, identify possible penalty relief, and help you address unpaid U.S. taxes from abroad. Get started with Bright!Tax.
Related Bright!Tax guides
Official sources
- IRS: Failure to Pay Penalty
- IRS: Automatic Two-Month Extension for Taxpayers Abroad
- IRS: Apply Online for a Payment Plan
- IRS: Penalty Relief for Reasonable Cause
Reviewed by
Katelynn Minott, CPA & CEO
Last reviewed
June 2026