IRS Failure-to-File 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.