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IRS Penalty Abatement
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Calculate your IRS penalties and interest, and find out if you qualify for First-Time Penalty Abatement or other penalty relief options.

Takes 2 minutes
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Based on IRS guidelines
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Tell us about your tax situation

We will calculate the penalties and interest that have accrued.

Enter the tax amount before penalties and interest

Usually April 15 of the year after the tax year

Leave blank if not yet filed

Leave blank if not yet paid (will use today)

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Understanding IRS Penalties

The IRS assesses two main types of penalties for late or unfiled tax returns: the Failure-to-File Penalty and the Failure-to-Pay Penalty. Understanding how these work is key to managing your tax debt.

Failure-to-File Penalty

This penalty is 5% of your unpaid taxes for each month (or partial month) that your tax return is late. The maximum penalty is 25% of your unpaid taxes.

Example: $10,000 owed, 6 months late = $2,500 penalty (25% max)

Failure-to-Pay Penalty

This penalty is 0.5% of your unpaid taxes for each month (or partial month) that the tax remains unpaid. The maximum penalty is 25% of your unpaid taxes.

Example: $10,000 owed, 12 months unpaid = $600 penalty (6%)

First-Time Penalty Abatement (FTA)

The IRS offers First-Time Penalty Abatement to taxpayers who have a clean compliance history. To qualify, you must meet these criteria:

  • Filed all currently required returns or filed an extension
  • Paid or arranged to pay any taxes due
  • No penalties for the 3 prior tax years (or any penalties were removed for an acceptable reason)

FTA can remove the failure-to-file penalty OR the failure-to-pay penalty (but not both). The IRS will typically abate whichever penalty is larger.

Important: Interest cannot be abated under FTA. Interest continues to accrue on any unpaid balance, including penalties, until the tax is paid in full.

Disclaimer: This calculator provides estimates based on IRS guidelines. Actual penalties may vary based on your specific situation and IRS calculations. Consult a tax professional for advice specific to your situation.