This paper presents a model and a heuristic algorithm for the Traveling Salesman Problem with Time Windows(TSPTW). The main difference of our model compared with the previous ones lies in that the time windows we are concerned are more flexible and realistic than the previous ones. In the typical TSPTW, the service at a node must begin within the time grid called the time window that is defined by the earliest and the latest time to start the service at each node. But, in real business practice, a lateness cost is usually penalized rather than the service is prohibited at all when a vehicle arrives after the latest time. Considering this situation, we develop a model with a new time window that allows an arrival after the latest time and penalizes the late arrival by charging a lateness cost. A two-phased heuristic algorithm is proposed for the model and is extensively tested to verify the accuracy and efficiency of the algorithm.