The penalty for late filing of Form 1040 varies depending on whether you owe taxes or are owed a refund. Here is an overview: - If you owe taxes: If you file your Form 1040 late and you owe taxes, you will generally have to pay a penalty on the unpaid tax amount. The penalty is typically 5% of the unpaid tax for each month (or part of a month) that the return is late, up to a maximum of 25%. However, if you are willing to set up a payment plan with the IRS, the penalty may be reduced to 0.25% per month. - If you are owed a refund: If you are owed a refund and file your Form 1040 late, there is usually no penalty. However, you must file within three years from the original due date of the return to claim your refund. Keep in mind that individual circumstances and specific tax laws can affect the penalties, so it is advisable to consult with a tax professional or refer to the IRS guidelines for accurate information based on your situation.