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Home IRS Penalty

Quick Failure to File Penalty Calculator

by Prashant Thakur
March 12, 2023
in IRS Penalty
0
failure to file penalty

Failure to file penalty is imposed on a taxpayer who owes some money as per tax return but does not file his/her tax return by the due date to file tax return or tax filing deadline. For example, if you owe taxes for the tax year 2022 (filing in April 2023 ) and miss filing your tax return by the due date – April 18, 2023, you may have to pay a failure-to-file-penalty of @5% per month unless you filed an application for an extension of the filing date. There are many other conditions as well that requires consideration for determining the penalty and also If the same is imposable on you.

Table of Contents

  • Failure to file penalty calculator
  • 4 Rules Applied for failure to file penalty calculator
  • Maximum and minimum failure-to-file penalty amounts
  • Is there some effect of failure to pay penalty on penalty for failure to file
  • When is the failure to file penalty not imposed ?

Failure to file penalty calculator

The failure-to-file penalty calculator can easily estimate the quantum of penalty that IRS may impose on you for failure-to-file within due date .

4 Rules Applied for failure to file penalty calculator

The failure to file penalty calculator is based on the tax law enshrined in IRC § 6651(a)(1) that lays down that the penalty for late filing shall be computed @ five percent of the tax due as on the due date for each month or partial month the return is late. It also provides a minimum amount and maximum penalty that can be imposed on a person.The rules applied to the calculator are :

  • The penalty rate is 5% of the unpaid taxes for each month or part of a month that a tax return is late.
  • The aggregate penalty can not exceed 25% of the unpaid taxes.
  • In case, both a failure to file and a failure to pay penalty are applied in the same month, maximum combined penalty remain 5% for each month.
  • If after 5 months you still haven’t paid, the Failure to File Penalty will max out. It means , maximum failure to file penalty , that is possible is 25%.

Maximum and minimum failure-to-file penalty amounts

This maximum penalty under section 6651(a)(1) can be 25 percent. However, if the delay in filing is more than 60 days after the due date (including extensions), the penalty shall not be less than the lesser of $435 or the amount due at the time of filing tax return. Year wise minimum penalty amounts are given in the table below:

Tax YearMinimum Penalty
2014135
2015205
2016205
2017210
2018210
2019435
2020435
2021435
2022435

Is there some effect of failure to pay penalty on penalty for failure to file

The rate of penalty for failure to file is 5% per month or part of a month. But if you also need to pay failure to pay the penalty for which the penalty rate is 0.5 %, the penalty rate for failure to file will be reduced to 4.5 % as long as you also pay failure to pay penalty.But, since the maximum failure to file a penalty that can be imposed is 25%, ( 5 months @ 5%), it means that if you are paying both penalties, then the maximum penalty fr failure to file will be 22.5 % and failure to pay is 25%. That is an aggregate of 47.5%. We have created a calculator to compute failure to file and pay penalty.

When is the failure to file penalty not imposed ?

It is not that if someone filed late return , he/she must be punished with the penalty for failure to file . Here are few instances in which failure to file penalty may not be imposed

  • If taxpayers have no tax due or expect a refund, no penalty can not be imposed.
  • If you applied for an extension to file taxes, you get automatic extension for six months. It means your due date shifts from normal due date to extended due date. For example , if you file an extension for tax year 2022 tax filing , then the due date shifts from 18th April 2023 to 18th October 2923. So , say you filed in July 2023, it will not be considered late.
  • As per IRC , no penalty can be imposed unless you are heard. So , if you provide reasonable cause for not filing the tax return , IRS may not impose penalty as they are authorised to consider those “reasonable cause” for the delay in filing.

Post Disclaimer

While the information on this site  - Internal Revenue Code Simplified-is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.

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  • Tax Rates 2023
    • Pension Plans Limits 2023
    • Estate & Trust
    • 2022 Tax Brackets
      • USA State and Local Taxes
      • EIC Table 2023, 2022
    • Tax Bracket 2021
    • Tax Brackets 2020
    • Tax Bracket 2019
      • Long Term Capital Gains Rate- 2019,2018,2017
      • 2019 & 2018 Standard Deduction
      • Kiddie Tax Brackets
    • Depreciation MACRS Table
  • Tax Information
    • Latest Phone number of IRS
    • Local Taxpayer Advocate Service Office
    • Search CAA & AA
  • Tax Calculator 2022 & 2023
    • Fastest Sales Tax Reverse Calculator
    •  EITC Calculator 2022 & 2023
    • SEP-IRA Calculator
    • Penalty Calculator
    • IRA Contribution Limit Calculator
    • Mileage Reimbursement Calculator
    • Net Investment Calculator
    • Alternative Minimum Tax Calculator for 2017 & 2018
    • Estimated Tax Penalty
    • Section 179 Deduction
    • tax residency
      • Physical Presence Test Calculator
      • US Tax Residency Calculator
      • First Year Choice Calculator
    • Capital Gains Calculator
    • Home Office Deduction Calculator
  • Write to me
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  • State and Local Taxes
    • California Tax Calculator With Tax Rate
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    • Massachusetts tax calculator
    • Illinois tax calculator with tax rates
    • Indiana Tax Rate Chart
    • NY State Tax Rate 2022
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