The penalty for filing taxes late with the IRS in 2025 is as follows:
- A late filing penalty of 5% of the unpaid taxes for each month or part of a month the return is late, up to a maximum of 25%.
- If you file more than 60 days late, the minimum penalty is $510 or 100% of the unpaid tax, whichever is less.
- A separate late payment penalty of 0.5% per month is charged on any unpaid taxes, also up to a maximum of 25%.
- If both penalties apply in the same month, the late filing penalty is reduced by the late payment penalty amount, resulting in 4.5% for filing late and 0.5% for paying late.
- Interest also accrues on unpaid taxes and penalties, compounded daily, at an interest rate of 8% as of 2025.
If you are getting a tax refund and owe no taxes, there is generally no penalty for filing late. Example: If you owe $1,000 and file 10 days late without an extension, you could owe a 4.5% late filing penalty ($45), a 0.5% late payment penalty ($5), plus interest. It's advisable to file and pay taxes as soon as possible after the deadline to minimize penalties and interest. Filing an extension and paying taxes by the original deadline can help avoid some penalties. This information applies specifically to U.S. federal taxes filed with the IRS for the 2024 tax year due in 2025. State tax penalties may vary. Let me know if you need details for a specific situation or state.
