IRS Penalty Guide
Failure to File Penalty (FTF)
IRC §6651(a)(1)
This guide explains the Failure to File Penalty (FTF), how the IRS calculates it, and what relief options are available — including First Time Abate and reasonable cause.
Penalty Rate
5% of unpaid tax per month or part of a month, up to 25%
Maximum: 25% of unpaid tax
First Time Abate Eligible
The Failure to File Penalty (FTF) is eligible for First Time Abate (FTA) relief under IRM 20.1.1.3.3.2.1. Taxpayers with no penalties in the prior 3 tax years may qualify for full penalty removal.
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Relief Options for This Penalty
First Time Abate (FTA)
Reasonable Cause
Statutory Exception
How This Penalty Is Calculated
Example Calculation
If you owe $10,000 and file 3 months late: $10,000 × 5% × 3 = $1,500 penalty. If more than 60 days late, the minimum penalty is the lesser of $525 or 100% of the unpaid tax.
Several relief programs may apply to the Failure to File Penalty (FTF). Upload your notice to see which ones fit your situation.
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Frequently Asked Questions
How is the failure to file penalty calculated?
The penalty is 5% of the unpaid tax for each month or partial month the return is late, up to a maximum of 25%. If both FTF and FTP penalties apply in the same month, the FTF penalty is reduced by the FTP amount.
Is there a minimum failure to file penalty?
Yes. If a return is filed more than 60 days after the due date (including extensions), the minimum penalty is the lesser of $525 (for returns required to be filed in 2026; adjusted annually for inflation) or 100% of the unpaid tax.
Does the penalty apply if I do not owe any tax?
No. The FTF penalty is calculated as a percentage of unpaid tax. If your return shows a refund or zero balance, the penalty is $0.
Facing the Failure to File Penalty (FTF)? Check your eligibility for relief.
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What qualifies as reasonable cause for penalty relief?
Reasonable cause includes circumstances beyond your control, such as serious illness, natural disaster, death of an immediate family member, inability to obtain records, or reliance on erroneous advice from a tax professional.
Can I get FTA relief if I had a penalty removed before?
Only if the prior penalty was removed for an acceptable reason other than FTA (such as reasonable cause). FTA can only be used once per type of penalty.
Does filing an extension eliminate the FTF penalty?
Filing a valid extension extends the filing deadline (typically by 6 months). If you file within the extended deadline, no FTF penalty applies. However, interest and the FTP penalty still accrue on any unpaid tax.
What happens when FTF and FTP penalties apply simultaneously?
In any month where both penalties apply, the FTF penalty is reduced by the FTP amount (0.5%), resulting in a combined rate of 5% per month. After 5 months, the FTF penalty maxes out and only the FTP penalty continues.
See If You Qualify to Wipe the Failure to File Penalty (FTF)
Upload your IRS notice and our tool checks the exact IRM provisions that apply to the Failure to File Penalty (FTF).
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See which penalties may qualify and the amount at issue on your notice. The IRS makes the final decision.