Tax Dictionary – Tax Penalty

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, 27 million taxpayers were charged tax penalties by the IRS. 98% of those penalties were either failure to file, failure to pay or estimated tax penalties. Only 12% of those penalties were removed (abated). To have a penalty abated, you 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.

Related Topics

Related Resources

IRS Notice CP05B – The IRS Needs More Information to Determine if You’re Due A Refund

Learn more about notice CP05B, why you received it, and how to handle an IRS CP05B notice with help from the tax experts at H&R Block.

Tax Dictionary – Form 1099-INT, Interest Income

If you receive $10 or more in interest, you will receive a Form 1099-INT showing the amount you received and taxes withheld. Learn more from H&R Block.

IRS Letter 5600C – You May Have Paid Too Much Shared Responsibility Payment

Receive an IRS 5600C letter? Learn more about letter 5600C, why you received it, and how to handle it with help from the tax experts at H&R Block.

Tax Dictionary – Gift Tax

Gift tax is typically paid by the donor unless the recipient agrees to pay the gift tax. Learn more from the tax experts at H&R Block.