Tax Filing Penalties
Understanding the consequences of non-compliance can help you prioritize your tax obligations. These penalties can significantly increase your tax burden.
Avoid Costly Penalties
The IRS and state tax authorities impose significant penalties for failing to file or pay taxes on time. Stay compliant to avoid these unnecessary costs.
Late Filing Penalties
Penalties for missing filing deadlines
IRS Form 1120 (C-Corporation)
5% of unpaid tax for each month or part of a month the return is late, up to 25% of unpaid tax
Minimum Penalty: $435 if more than 60 days late (if tax due)
IRS Form 1065 (Partnership)
$210 per partner per month (or part of a month) for up to 12 months
Minimum Penalty: None
Foreign Information Forms (5471, 8858, etc.)
$10,000 per form per year plus additional penalties for continued failure after IRS notification
Minimum Penalty: $10,000 per form
State Income Tax Returns
Varies by state, typically 5-25% of tax due plus interest
Minimum Penalty: Varies by state
Late Payment Penalties
Penalties for not paying taxes on time
Federal Income Tax
0.5% of unpaid tax for each month or part of a month the tax is unpaid, up to 25%
Minimum Penalty: None
Estimated Tax Payments
The IRS will charge interest on underpayments and may impose an underpayment penalty
Minimum Penalty: None, but interest applies
State Tax Payments
Varies by state, typically 0.5-1% per month plus interest
Minimum Penalty: Varies by state
Information Reporting Penalties
Penalties for failing to provide required information
Form 1099 Information Returns
$50 to $290 per form depending on how late (with higher penalties for intentional disregard)
Minimum Penalty: $50 per form
FBAR Filing
Up to $10,000 per non-willful violation; for willful violations, greater of $100,000 or 50% of account value
Minimum Penalty: Up to $10,000 for non-willful
Other Compliance Penalties
Penalties for various other tax compliance failures
Accuracy-Related Penalty
20% of the underpayment of tax due to negligence, substantial understatement, or valuation misstatement
Minimum Penalty: None
Fraud Penalty
75% of the underpayment due to fraud
Minimum Penalty: None
Bad Check Penalty
2% of the amount of the check (payment) that was refused
Minimum Penalty: From $25 to $1,250
Need help with penalty abatement?
If you've incurred penalties, we can help with penalty abatement requests and establishing reasonable cause.