IRS Penalties

IRS Definition

Common penalties include:

• Failure to file: when you don’t file your tax return by the return due date, April 15, or extended due date if an extension to file is requested and approved
• Failure to pay: when you don’t pay the taxes reported on your return in full by the due date, April 15. An extension to file doesn’t extend the time to pay.
• Failure to pay proper estimated tax: when you don’t pay enough taxes due for the year with your quarterly estimated tax payments when required
• Dishonored check: when your bank doesn’t honor your check or other form of payment

More from H&R Block

In 2015, the IRS charged penalties to 27 million taxpayers.

The majority (98%) of those penalties were:

• Failure to file penalties
• Failure to pay penalties
• Estimated tax penalties

Only 12% of those penalties were removed (abated). To have a penalty abated, you’ll need to call or write the IRS. You may be able to get a penalty removed simply because you haven’t had any IRS penalties charged in the last three years. This option, known as first-time abatement, is available for failure to file and failure to pay penalties.

Learn how to address IRS penalties.