Special Trivia Question for 9/22/26 (First Time Abatement!)

For individual taxpayers, how much is the combined failure-to-file and failure-to-pay penalties?

A. Minimum of $525
B. 0.5% of your total tax liability per month, maxing out at 5% (10 months)
C. 1% of your total tax liability per month, maxing out at 5% (5 months)
D. $0

The failure to file penalty is 5% of the tax owed as of April 15th for each month, or part of the month, that the return is late. This caps at 25% (five months), but interest continues to accrue afterward indefinitely.

If your return is over 60 days late, there is a minimum penalty of $525 or 100% of tax owed, whichever is less.

If you don’t owe any tax on April 15th? No failure to file penalty. The IRS is happy to hold on to your refund.