Tax Penalties
| Penalty Type | Amount / Rate | Max / Notes |
|---|---|---|
| Failure to File Return | 5% of unpaid tax per month | Max 25%; Minimum $510 if >60 days late |
| Failure to Pay Tax | 0.5% per month (1% if after levy) | Max 25%; 0.25% if in installment agreement |
| Combined Failure to File & Pay | Up to 5% per month (4.5% file + 0.5% pay) | Max ~47.5% |
| Interest on Unpaid Tax | ~7% annually (compounded daily) | Based on federal short-term rate + 3% |
| Underpayment of Estimated Tax | Interest-based penalty | Avoid if 90% of current year tax or 100–110% of last year’s paid |
| Information Returns (W-2/1099) | $60–$340 per form | Intentional disregard: $680+ per form, no cap |
| Accuracy-Related Penalty | 20% of tax underpayment | 40% for gross misstatements |
| Civil Fraud Penalty | 75% of tax underpayment | Requires IRS proof of fraud |
| Frivolous Return Penalty | $5,000 | For knowingly false or invalid filings |
| Payroll Tax Deposit Late | 2–15% of unpaid taxes | Increases with lateness stages |
| Trust Fund Recovery Penalty (TFRP) | 100% of unpaid trust fund taxes | Personally liable |
| Fail to Furnish W-2/1099 to Payee | $310 per form | Separate from filing penalty |
| Fail to File 1065 / 1120S | $245 per owner per month (up to 12 months) | Up to $11,760+ for 4-person firm |
| Excess IRA/HSA Contributions | 6% of excess amount | Annual until corrected |
| Early Retirement Withdrawal | 10% of withdrawal | Before age 59½; exceptions apply |
| Fail to File FBAR (Foreign Bank Account) | $10,000 (non-willful); up to $100K+ or 50% of account (willful) | Criminal charges possible |
| Fail to File Form 8938 (FATCA) | $10,000 initial; $50,000 for continued failure | Additional tax penalties may apply |
| ACA Shared Responsibility (Employers) | $241.67–$362.50 per employee per month | IRC §4980H(a/b); ~ $2,900–$4,350/year |
| Excess Advance Premium Tax Credit | Repayment required | Based on income discrepancy |
| BOI Reporting Penalty (FinCEN 2025) | $591 per day; up to $10,000 + jail (2 years) | New in 2024/25; applies to business owners |
| Nonprofit Late Form 990 Filing | $20–$110 per day | Up to $56,000; 3-year lapse = auto revocation |
| Expatriation Tax | Tax on deemed sale of worldwide assets | Applies to covered expatriates |
| Tax Evasion (Criminal) | Up to $250,000 fine + 5 years prison | Requires willful intent |
| Willful Failure to File or Pay | Up to $100,000 fine + 1 year prison | Criminal offense |
| Aiding/Assisting Fraud | Up to 3–5 years in prison + fines | For preparers or others involved in fraud |
Articles
- All Posts
- Tax Planning
- Tax News
Waiting for your IRS tax refund can feel stressful, especially when you’re counting on that money for expenses, savings, or...
Did you know that there’s a tax-free option to pay for costs of someone with disabilities that’s comparable to saving...
New legislation introduced in the reconciliation bill of this summer known as the “One Big Beautiful Bill Act” (OBBBA) will...
An identity theft incident in the tax industry can be a nightmare. Imagine filing your tax return and finding out...
Non-profit organizations across the United States are facing significant problems because federal funding has been cut or decreased. This drastic...
If you’re self-employed, every penny matters. You’ll need to purchase your own equipment, supplies and services. You can work at...
