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IRS Failure-to-File Penalty

IRC 6651(a)(1) - The penalty for filing your tax return late

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5%
Per month late
25%
Maximum penalty
$530
Minimum (60+ days late)

How the Penalty is Calculated

The IRS charges 5% of your unpaid taxes for each month (or partial month) that your return is late. The penalty starts the day after the filing deadline and continues until you file or until it reaches the maximum.

  • 1Base Rate: 5% of unpaid taxes per month or partial month
  • 2Maximum: 25% of unpaid taxes (5 months)
  • 3Minimum: $530 or 100% of tax owed (if 60+ days late)
  • 4Combined Rule: FTF reduced by FTP when both apply

Example Calculation

Your Situation

  • Unpaid tax: $10,000
  • Due date: April 15, 2024
  • Filed: July 20, 2024 (3+ months late)

Penalty Breakdown

  • Month 1: $10,000 x 5% = $500
  • Month 2: $10,000 x 5% = $500
  • Month 3: $10,000 x 5% = $500
  • Total FTF Penalty: $1,500

How to Get Penalty Relief

First-Time Abatement (FTA)

Administrative waiver for taxpayers with clean compliance history for the prior 3 years.

Check FTA eligibility →

Reasonable Cause

Circumstances beyond your control: serious illness, natural disaster, death in family, IRS error.

Requires written explanation

Related Penalties

→ Failure-to-Pay Penalty (0.5%/month)→ First-Time Abatement Relief

People Also Ask

The IRS failure-to-file penalty is 5% of your unpaid taxes for each month (or partial month) your return is late, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty is the lesser of $530 (for 2025) or 100% of the tax owed.

Yes. The IRS offers several relief options including First-Time Abatement (FTA) for taxpayers with a clean 3-year compliance history, Reasonable Cause abatement for circumstances beyond your control, and statutory exceptions for certain situations.

If you do not file, the IRS may file a Substitute for Return (SFR) on your behalf, which typically results in a higher tax liability because it does not include deductions or credits you may be entitled to. The failure-to-file penalty continues to accrue, and the IRS can take collection actions.

No. If you are due a refund, there is no failure-to-file penalty. However, you must file within 3 years of the original due date to claim your refund. After 3 years, the refund is forfeited to the U.S. Treasury.

Related Resources

Failure-to-Pay Penalty (0.5%/month)

0.5% per month, max 25%

First-Time Abatement Relief

Administrative waiver for clean compliance history

IRS Interest Calculator

Daily compounding interest on unpaid taxes

IRS Notice Library

Understand your IRS notice and next steps

Failure-to-File Penalty FAQ

Common questions about the IRS late filing penalty

The failure-to-file penalty (IRC 6651(a)(1)) is charged when you don't file your tax return by the due date, including extensions. It's 5% of your unpaid taxes for each month or part of a month that your return is late, up to a maximum of 25%.

If your return is more than 60 days late, there's a minimum penalty of $530 (for 2025) or 100% of the unpaid tax, whichever is smaller. For example, if you owe $300, the minimum penalty would be $300, not $530.

When both penalties apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount. So instead of 5% FTF + 0.5% FTP = 5.5%, you pay 4.5% FTF + 0.5% FTP = 5% total for that month.

If you're due a refund, there's no failure-to-file penalty. However, you still need to file within 3 years to claim your refund. After 3 years, you forfeit your refund.

Yes. You may qualify for First-Time Abatement (FTA) if you have a clean compliance history for the prior 3 years. You can also request penalty relief for reasonable cause (serious illness, natural disaster, etc.).

A valid extension gives you 6 extra months to FILE (until October 15), but not to PAY. If you owe taxes and don't pay by April 15, you'll still owe failure-to-pay penalties and interest, even with an extension.

Calculate Your Failure-to-File Penalty

Get a detailed breakdown and check if you qualify for penalty relief

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