26Title 26The US tax code, read & explained ES

26 U.S.C. § 6651

§ 6651. Failure to file tax return or to pay tax

1,327 words · amended 18 times · cited by 12 other sections

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Explainer

Late-filing and late-payment penalties, and how to shrink them

Filing late costs 5% of the unpaid tax a month, up to 25%. Paying late costs 0.5% a month, up to 25%. So if you can't pay, file on time anyway. Interest comes on top.

In plain English

Section 6651 sets the two penalties that most often appear on IRS bills. One is for filing late and one is for paying late. They're very different in size:

  • Failure to file: 5% of the tax you still owe, for each month or part of a month the return is late, up to 25%.
  • Failure to pay: 0.5% of the unpaid tax for each month, also up to 25%.

Filing late costs ten times as much per month as paying late. If you can't pay, file on time anyway (or file an extension) and pay what you can. Interest is charged separately on unpaid tax and on penalties, at the federal short-term rate plus 3 percentage points, reset every quarter.

Who it touches

Anyone who files or pays after the due date: April 15, 2027 for 2026 returns, or October 15 with an extension. An extension gives you more time to file, not to pay.

The rules

Situation Penalty
Return late, tax unpaid 5% a month, up to 25%
Tax unpaid after the due date 0.5% a month, up to 25%
Both in the same month 4.5% for filing + 0.5% for paying
Return more than 60 days late At least a minimum set by law ($435, raised each year for inflation, so a little over $500 now), or 100% of the tax if that's less
After a notice of intent to levy The late-payment rate doubles to 1% a month
On a payment plan, return filed on time The late-payment rate falls to 0.25% a month
Fraudulent failure to file 15% a month, up to 75%

The penalties are figured on the tax still owed. If your and already cover the tax, a late return usually costs nothing, even if it's very late. But a refund only stays claimable for about 3 years.

Getting a penalty removed. The law excuses failures due to reasonable cause and not willful neglect, such as serious illness, a disaster, or records you couldn't get. The IRS also offers first-time abatement: if you had no penalties in the previous three tax years (an estimated-tax penalty doesn't count), you've filed every required return, and you've paid or arranged to pay the tax due, you can usually ask by phone to have a filing or payment penalty removed. Interest on the removed penalty goes too, but interest on the tax itself stays.

Worked example

Rosa owes $4,000 for 2026. She files and pays on August 20, 2027, about 4 months and 5 days after April 15, so that's 5 months or part-months.

  • Filing late: 4.5% × 5 × $4,000 = $900
  • Paying late: 0.5% × 5 × $4,000 = $100
  • Plus interest of roughly $100

That's about $1,100 in extra cost. Had she filed on April 15 and paid in August, the penalty would have been the $100 for paying late, plus interest.

Watch out for

  • An extension (Form 4868) gives you more time to file, not to pay. Pay what you expect to owe by April 15.
  • Estimated tax penalties for freelancers are a separate rule (section 6654).
  • Ask for first-time abatement before you pay a penalty. It's easier than getting a refund later.

Draft explainer. Figures checked against IRS Rev. Proc. 2025-32 and the current text on November 5, 2026. Not yet reviewed by a licensed tax professional.

History

Part of the code since 1954. Last changed December 20, 2019 by the Further Consolidated Appropriations Act, 2020 (SECURE Act).

Every change, newest first (19)
  1. December 20, 2019Further Consolidated Appropriations Act, 2020 (SECURE Act)
  2. July 1, 2019Public Law 116-25
  3. March 23, 2018Consolidated Appropriations Act, 2018
  4. December 22, 2017Tax Cuts and Jobs Act (2017)
  5. February 24, 2016Public Law 114-125
  6. December 19, 2014Tax Increase Prevention Act of 2014
  7. June 17, 2008Public Law 110-245
  8. July 22, 1998IRS Restructuring and Reform Act of 1998
  9. July 30, 1996Public Law 104-168
  10. December 19, 1989Omnibus Budget Reconciliation Act of 1989
  11. December 22, 1987Omnibus Budget Reconciliation Act of 1987
  12. October 22, 1986Tax Reform Act of 1986
  13. July 18, 1984Deficit Reduction Act of 1984
  14. September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
  15. October 4, 1976Tax Reform Act of 1976
  16. April 1, 1971Public Law 92-9
  17. December 30, 1969Tax Reform Act of 1969
  18. June 28, 1968Public Law 90-364
  19. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Addition to the tax
  2. (b) Penalty imposed on net amount due
  3. (c) Limitations and special rule
  4. (d) Increase in penalty for failure to pay tax in certain cases
  5. (e) Exception for estimated tax
  6. (f) Increase in penalty for fraudulent failure to file
  7. (g) Treatment of returns prepared by Secretary under section 6020(b)
  8. (h) Limitation on penalty on individual’s failure to pay for months during period of installment agreement
  9. (i) Application to imputed underpayment
  10. (j) Adjustment for inflation
(a) Addition to the tax

In case of failure—

(1)

to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate;

(2)

to pay the amount shown as tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; or

(3)

to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213(b)) within 21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate.

In the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under paragraph (1) shall not be less than the lesser of $435 or 100 percent of the amount required to be shown as tax on such return.

(b) Penalty imposed on net amount due

For purposes of—

(1)

subsection (a)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return,

(2)

subsection (a)(2), the amount of tax shown on the return shall, for purposes of computing the addition for any month, be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return, and

(3)

subsection (a)(3), the amount of tax stated in the notice and demand shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the beginning of such month.

(c) Limitations and special rule
(1) Additions under more than one paragraph

With respect to any return, the amount of the addition under paragraph (1) of subsection (a) shall be reduced by the amount of the addition under paragraph (2) of subsection (a) for any month (or fraction thereof) to which an addition to tax applies under both paragraphs (1) and (2). In any case described in the last sentence of subsection (a), the amount of the addition under paragraph (1) of subsection (a) shall not be reduced under the preceding sentence below the amount provided in such last sentence.

(2) Amount of tax shown more than amount required to be shown

If the amount required to be shown as tax on a return is less than the amount shown as tax on such return, subsections (a)(2) and (b)(2) shall be applied by substituting such lower amount.

(d) Increase in penalty for failure to pay tax in certain cases
(1) In general

In the case of each month (or fraction thereof) beginning after the day described in paragraph (2) of this subsection, paragraphs (2) and (3) of subsection (a) shall be applied by substituting “1 percent” for “0.5 percent” each place it appears.

(2) Description

For purposes of paragraph (1), the day described in this paragraph is the earlier of—

(A)

the day 10 days after the date on which notice is given under section 6331(d), or

(B)

the day on which notice and demand for immediate payment is given under the last sentence of section 6331(a).

(e) Exception for estimated tax

This section shall not apply to any failure to pay any estimated tax required to be paid by section 6654 or 6655.

(f) Increase in penalty for fraudulent failure to file

If any failure to file any return is fraudulent, paragraph (1) of subsection (a) shall be applied—

(1)

by substituting “15 percent” for “5 percent” each place it appears, and

(2)

by substituting “75 percent” for “25 percent”.

(g) Treatment of returns prepared by Secretary under section 6020(b)

In the case of any return made by the Secretary under section 6020(b)—

(1)

such return shall be disregarded for purposes of determining the amount of the addition under paragraph (1) of subsection (a), but

(2)

such return shall be treated as the return filed by the taxpayer for purposes of determining the amount of the addition under paragraphs (2) and (3) of subsection (a).

(h) Limitation on penalty on individual’s failure to pay for months during period of installment agreement

In the case of an individual who files a return of tax on or before the due date for the return (including extensions), paragraphs (2) and (3) of subsection (a) shall each be applied by substituting “0.25” for “0.5” each place it appears for purposes of determining the addition to tax for any month during which an installment agreement under section 6159 is in effect for the payment of such tax.

(i) Application to imputed underpayment

For purposes of this section, any failure to comply with section 6226(b)(4)(A)(ii) shall be treated as a failure to pay the amount described in subclause (II) thereof and such amount shall be treated for purposes of this section as an amount shown as tax on a return specified in subsection (a)(1).

(j) Adjustment for inflation
(1) In general

In the case of any return required to be filed in a calendar year beginning after 2020, the $435 dollar amount under subsection (a) shall be increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year determined by substituting “calendar year 2019” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(2) Rounding

If any amount adjusted under paragraph (1) is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.