IRS Penalty Calculator Hub

IRS penalties are calculated based on specific IRC sections and IRS formulas. The most common penalties are Failure-to-File (5%/month, max 25%) and Failure-to-Pay (0.5%/month, max 25%). Our calculators use the formulas specified in the Internal Revenue Code to provide estimates. Simply enter your tax information and let our calculators do the math.

The Failure-to-Pay (FTP) penalty is the most common IRS penalty. It applies when you file your return but don't pay the full amount owed by the due date. The penalty is 0.5% of unpaid tax per month, maxing out at 25%. The Failure-to-File (FTF) penalty is also common but more severe at 5% per month.

Yes! The IRS offers several penalty relief options: (1) First-Time Penalty Abatement (FTA) for taxpayers with clean 3-year compliance history, (2) Reasonable Cause relief for those who can show ordinary business care, (3) Statutory exceptions for certain situations. Our calculators show if you qualify for FTA and estimate potential savings.

The Failure-to-File (FTF) penalty is 5% of unpaid tax for each month (or part of a month) that your return is late, up to a maximum of 25%. If you're more than 60 days late, the minimum penalty is the smaller of $510 (2024) or 100% of unpaid tax. Always file on time, even if you can't pay - the FTF penalty is 10x higher than the FTP penalty.

You have several options: (1) Installment Agreement - pay over time in monthly payments, (2) Offer in Compromise - settle for less than you owe, (3) Currently Not Collectible status - temporary relief during hardship, (4) Wait out the CSED - the IRS has 10 years to collect. Our Payment Options Calculator compares all options for your situation.

The IRS charges interest at the federal short-term rate plus 3% (currently 7% for Q4 2025) on unpaid taxes. Interest compounds daily (IRC § 6622), meaning you pay interest on interest. Interest starts accruing from the original due date of your return. Use our Interest Calculator to see exactly how much interest you'll owe.

The Trust Fund Recovery Penalty (TFRP) under IRC § 6672 is a 100% penalty on unpaid employee withholding taxes (income tax + employee FICA). It can be assessed personally against anyone "responsible" for collecting and paying over these taxes. This is one of the most serious IRS penalties and cannot be discharged in bankruptcy.

If you have foreign financial accounts exceeding $10,000 at any time during the year, you must file an FBAR (FinCEN 114). Failure to file can result in penalties up to $16,536 per violation (non-willful) or 50% of account balance (willful). Use our FBAR Calculator to understand your obligations and potential penalties.