IRS late filing & payment penalties.

late filing & late payment

See how fast penalties and interest grow on unpaid tax, and why filing on time matters even if you can't pay.

Failure to file: 5% of unpaid tax per month, up to 25% (reduced by the failure-to-pay penalty in the same month). Failure to pay: 0.5% per month, up to 25% (0.25% while on an installment agreement). If you file more than 60 days late, the minimum penalty is $525 or 100% of the tax, whichever is less. Interest uses the 7% rate in effect in late 2026, compounded daily. The IRS may grant relief for reasonable cause or first-time abatement.