Is there a penalty for filing taxes late if I'm owed a refund?

No, there is no penalty for filing a late tax return if you are owed a refund. The failure-to-file and failure-to-pay penalties only apply when you owe tax. However, you should still file as soon as possible because: (1) you have only 3 years from the original due date to claim your refund, after which the money goes to the U.S. Treasury permanently, (2) if you don't file, the IRS may file a substitute return for you (called an SFR or Substitute for Return) that typically doesn't include deductions and credits you're entitled to, making it look like you owe money, (3) not filing prevents you from receiving stimulus payments and refundable credits (like the Earned Income Tax Credit), and (4) not filing can delay future refunds if the IRS places a hold on your account. Many people who think they owe taxes actually have refunds waiting, especially if they had tax withheld from wages. Always file, even if late, to preserve your refund claim.