1701Q Late Filing Penalty in 2025: What You Need to Know

This guide is for freelancers and small business owners who missed one or more 1701Q filings in 2025 and need to know what happens next, what it’s going to cost, and how to get back on track.

It’s 2026 and you just realized you never filed your 1701Q last year.

Maybe it slipped through the cracks during a busy quarter. Maybe you weren’t sure if you were required to file. Or maybe life just got in the way.

Whatever the reason is, it’s not too late to fix it.

But if you’re ready to file right now, go through the steps below. Each one unlocks the next , just mark it done as you go.

0 / 6 steps

Keep your Taxumo account open in another tab as you go through each step. You will need it to complete this activity.

1

Log in to Taxumo

Start here. Sign in to your account.

Go to Taxumo Mark as done

2

Enter your income and expenses

Log all 2025 earnings and expenses in Cash Flow.

Go to Cash Flow Mark as done

3

File your late taxes

Head to Tax Dues. Answer the questions on the pre-submission fields.

Once you have filled in all the required fields, Taxumo will lead you to the summary page where your penalties are automatically computed.

Can’t file? Make sure you have an active Taxumo subscription. View subscription plans →

Go to Tax Dues Mark as done

4

Review computed penalties

Check the surcharge, interest, and compromise penalty.

On the summary page you will see a breakdown like this. Make sure the checkbox is ticked so Taxumo automatically includes the penalties on your tax due.

Mark as done

5

Submit and pay

Choose this option to file and pay directly through Taxumo.

Select Prepare, File, and Pay to let Taxumo handle the submission and payment for you. This is the recommended option.

Mark as done

6

Check your confirmation

All done. Taxumo has everything stored for you.

Taxumo automatically saves all your receipts and confirmation letters. You can find them anytime under the Past Filings tab in Tax Dues — it looks like this.

View Past Filings Mark as done

Congratulations!

You are all caught up. Need other tax services?

Explore Taxumo Services

↩ Undo last step

What Does It Mean to File Late?

Miss the deadline and your return becomes a late filing. You can still file, but the longer you wait, the more it costs.

Missing a deadline means the BIR adds three charges on top of whatever tax you originally owed. The rates below apply to micro and small taxpayers.

Surcharge — 10% of your unpaid tax
This is flat and one-time. This rate applies to micro and small taxpayers. (Per RR No. 6-2024 under the EOPT Act)

Interest — 6% per year
This grows daily on your unpaid balance from the original deadline until you fully pay.

Compromise Penalty — an additional charge

For micro and small taxpayers, this is set at 50% of the applicable amount under the BIR's penalty table. The exact figure depends on how much tax you originally owed.

What If You Had Zero Income or Missed Multiple Quarters?

Even if you earned nothing that quarter, you still needed to file. A zero-income late return typically doesn't carry a surcharge or interest, but it does carry a small compromise penalty. It's quick to file, costs very little, and keeps your compliance record in good standing.

If you missed more than one quarter, each one is its own return with its own penalties. File them in order: Q1 first, then Q2, then Q3.

Is There Any Way to Reduce the Penalties?

In some situations, yes. Taxpayers can file a penalty abatement request through their Revenue District Office (RDO), particularly for circumstances that were genuinely beyond their control. It's not guaranteed, but it's worth exploring with a tax professional.

If you're ready to file right now, go through the steps below. Each one unlocks the next — just mark it done as you go.