Filed late? Your late filing penalty can come off
Your return went in late, and the IRS added a charge for it. The failure to file penalty is 5% of your unpaid tax for each month or part of a month, up to 25%. First-time removal and reasonable cause both cover it, and a tax pro can ask for you.
- 5 months
At 5% a month, the penalty reaches its 25% cap after 5 months; when late payment runs too, the filing part stops at 22.5%.
a return still not filed after 5 months has reached the cap.
file now, even without the money to pay, then ask for removal.
- 3 years
Already paid the penalty? The Form 843 instructions say you generally must claim within 3 years after filing the return or 2 years after paying, whichever is later.
for example, a return filed August 14, 2025 and paid that day has until August 14, 2028.
check both dates on your records before you call or mail the form.
- 60 days
A return more than 60 days late has a minimum penalty: $525 for returns due in 2026, or the tax owed if less.
a small tax bill can carry a penalty as big as the tax itself.
if you already filed, check the notice amount against the minimum table below, then call.
How it's figured
Say you owed $4,000 on your 2024 return, like Odette, and filed on August 14, 2025, four months after the April 15 due date. Her late filing penalty came to $720.
The IRS failure to file page sets out the steps. Start with the tax on the return. Subtract tax paid on time, such as withholding, and refundable credits. Then charge 5% for each month or part of a month.
If you also paid late, the two charges overlap. In any month both apply, the IRS cuts the filing charge to 4.5% and adds 0.5% for paying late.
| Odette, $4,000 owed | Late filing | Late payment |
|---|---|---|
| Each month, both apply | 4.5% = $180 | 0.5% = $20 |
| 4 months | $720 | $80 |
The 25% cap and the minimum
The charge stops growing at 25%, which it hits after 5 months. If the return is more than 60 days late, a minimum also applies: the smaller of the amount below or 100% of the tax owed.
| Return due date | Minimum penalty |
|---|---|
| In 2026 | $525 |
| In 2025 | $510 |
| In 2024 | $485 |
| In 2023 | $450 |
| 2020 to 2022 | $435 |
Odette's $720 is already above the $510 minimum for a 2025 due date, so the minimum changes nothing for her. On a $300 tax bill, the charge would be the full $300.
Getting it removed
Late filing is one of the three penalties covered by first-time removal. If your 3 earlier years were clean, first-time removal can take it off when you ask.
If not, a reason such as a serious illness or a disaster may work. The reasons page lists what to send. When the penalty comes off, the interest charged on it comes off too, per the IRS page.
Calculator
Change the tax and the dates to see your own charge. It starts with Odette's numbers.
Starts with an example: $4,000 owed on a 2024 return, filed and paid on August 14, 2025. Change any box to see yours.
Example
If both penalties come off, you save $817the penalties plus the interest charged on them
Late filing penalty: $720 (4 months late)
Late payment penalty: $80 (4 months unpaid)
Interest to the pay date: $111
Total with the tax: $4,911
An estimate from the IRS rates. It leaves out interest on the late payment penalty, which the IRS starts from its notice date.
Have these numbers reviewed. Interest keeps growing on unpaid penalties, even after the tax itself is paid. A licensed tax professional can check whether the $817 in penalties and interest can come off, and ask the IRS for you.
The full penalty calculator explains each step. The late payment side is on the late payment penalty page.
Frequently asked questions
How much is the IRS late filing penalty?
5% of the unpaid tax for each month or part of a month the return is late, up to 25%. A return more than 60 days late also has a minimum, $525 for returns due in 2026.
What is the penalty for not filing taxes if I owe nothing?
The late filing penalty is a percent of tax owed, so with nothing owed it is usually zero. A refund you never claim can be lost after 3 years, though.
Is the penalty for filing late worse than paying late?
Yes, by about ten times. Late filing is 5% a month and late paying is 0.5%. File on time even if you can't pay.
Does an extension stop the late filing penalty?
Yes, for filing, if you file by the extended date. It does not extend the time to pay, so the late payment penalty and interest still run.
Can the late filing penalty be removed?
Yes. First-time removal and reasonable cause both cover it. See IRS penalty removal for which one fits.
Sources
- Failure to file penalty, irs.gov, checked October 2026.
- Failure to pay penalty, irs.gov, checked October 2026.
- Administrative penalty relief, irs.gov, checked October 2026.
What to do now
Talk it through by phone
Your notice shows a late filing penalty, and it is the one first-time removal and reasonable cause both cover. A licensed tax professional can check which route fits and ask the IRS to take it off. Call now with the notice and the date you filed.
A licensed tax professional answers during business hours. The call costs nothing, and you are not signing up for anything. Form 843 Help is a private service, not the IRS, and your details go to one tax professional only.
- You call during business hours and say which penalty and tax year you are looking at.
- A licensed tax professional reads your notice with you and checks first-time removal and reasonable cause.
- You hear the options and the fee for filing before you agree to anything.
Or send the details about your penalty
You would rather write than call about your penalty for . A request that names the wrong rule or misses a year can be turned down, so a licensed tax professional checks it first. Send the penalty amount and the tax year from the notice.