Individual Failure to File a Tax Return Penalty

The IRS failure to file penalty is a penalty that is imposed on taxpayers who fail to file their federal income tax returns by the deadline. The penalty is calculated as a percentage of the tax owed on the return that is not filed. The penalty is separate from any penalty or interest that may be assessed for failure to pay taxes owed.

The failure to file penalty is calculated as a percentage of the tax owed on the return that is not filed. The penalty is generally 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax. If the return is more than 60 days late, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less. This penalty is in addition to any penalty or interest that may be assessed for failure to pay taxes owed.

If you file your return more than 60 days after the due date or extended due date, the minimum penalty for failure to file is the smaller of $435 or 100% of the unpaid tax.

If you are subject to the IRS failure to file penalty, there are several things you can do to reduce or eliminate the penalty. One option is to file your return as soon as possible, even if you cannot pay the full amount owed. This will help to reduce the penalty and interest charges that accrue over time.

You may also be able to request a first-time penalty abatement if you have not previously been subject to any penalties for the past three years. This may allow you to have the penalty waived, but you must show that you have a reasonable cause for the failure to file on time, such as a medical emergency or other unforeseen circumstances.

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