Late Tax Penalties

There are two types of late tax penalties; tax penalties for filing late tax returns and tax penalties for not paying taxes owed to the IRS. Below are information on the two types of late tax penalties as well as their rates.

Failure-to-Pay on time tax penalty

The failure to pay on time tax penalty is usually 1/2 of 1% of any tax (other than estimated tax) not paid by the regular due date. It is charged for each month or part of a month that the tax is unpaid after the due date. The maximum penalty is 25%.

Failure-to-file tax penalty

A failure to file penalty is usually charged if your tax return is filed after the due date (including extensions). It is usually 5% of the tax not paid by the regular due date for each month or part of a month your tax return is late. Generally, the maximum penalty is 25%.

If your tax return is more than 60 days late

If your tax return is more than 60 days late, the minimum penalty is $100 or the balance of the tax due on your tax return, whichever is smaller.

You might not owe the penalty if you have a good reason for filing late tax return. Attach a statement to your tax return fully explaining the reason.