How much are your penalties?

You filed late, paid late, or both, and want an estimate first. Filing late costs 5% of the unpaid tax each month and paying late 0.5%, each up to 25%. Or have a tax pro ask the IRS to remove them.

What you owe and when

Estimate the late filing and late payment penalties on an individual return. For other penalties, use the right page: payroll, S corp, partnership and estimated tax.

• 5% vs 0.5%

  Filing late costs 5% of the unpaid tax a month. Paying late costs 0.5%.

  in a month when only one applies, the filing penalty costs ten times more.

  file now, even if you cannot pay yet.

• 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.

• 25%

  Each penalty stops growing at 25% of the unpaid tax. Filing alone hits 25% after 5 months; when both run, filing tops out at 22.5%.

  the late payment charge and the interest keep running after the filing charge stops.

  pay what you can now to slow the interest.

Late filing penalty

Each late month adds 5% of what you still owe, and a few days late counts as a whole month. It stops at 25%, per the IRS failure to file page. In months when both penalties apply, the filing charge is 4.5%. A return more than 60 days late has a minimum of $510 for a 2025 due date, or the tax owed if less.

Late payment penalty

Every month the tax sits unpaid adds 0.5%, with the same 25% ceiling, per the IRS failure to pay page. It is 0.25% on a payment plan if you filed on time.

Interest to the pay date

Interest starts on the due date and runs on the tax and the late filing penalty, compounded daily. The IRS quarterly rates went back up to 7% on July 1, 2026, after 6% from April to June 2026. The calculator uses each quarter's rate. The IRS charges interest on the late payment penalty from its notice date, which this skips.

What removal would give back

If the penalties come off, the interest charged on them comes off too. In the example, that is $800 in penalties plus the interest on them.

Ask for it

If you were on time the 3 years before, ask for first-time removal by phone. Otherwise, fill in Form 843 with a good reason.

Three worked examples

• Odette: $4,000 owed, filed and paid 4 months late. Late filing $720, late payment $80.
• Daniel: $6,000 owed, filed on time, paid 12 months late. Late filing $0, late payment $360, plus interest at 7% a year.
• Small bill: $300 owed, filed 7 months late. The 25% cap is $75, but the minimum for a 2025 due date is the tax itself, so the late filing penalty is $300.

Your notice shows the IRS figure. See who qualifies for removal.