What happens if a taxpayer files their return late but is due a refund?

When a taxpayer files their return late but is entitled to a refund, there is no penalty incurred for the late filing. This is because the IRS generally assesses penalties for failing to file on time only when the taxpayer owes taxes. Since a refund indicates that the taxpayer has overpaid, there is no financial obligation that triggers a penalty.

It's important to note that while filing late may delay the processing of the refund, it does not result in a penalty as long as there are no taxes owed. In this context, the correct answer accurately reflects that the taxpayer will not face penalties simply because they filed their return after the due date.