Penalties for Not Filing IRS Taxes

There are penalties for not filing IRS taxes. The penalty for failing to file income tax return, filing tax return late or paying taxes late are outlined in the IRC code Section 6651. Penalties for not filing IRS taxes are called delinquency penalties.

What are the penalties for not filing IRS taxes?

The penalty for failing to file income tax return is no more than 25% of the taxes owed to the IRS on any tax return.

IRS tax penalty calculation for not filing taxes

The IRS tax penalty calculation is 5% per month for any part of any month that a tax return is late. This IRS tax penalty calculation is performed up to five months with a maximum IRS tax penalty of 25%.

Getting rid of penalties from the IRS

The penalties for not filing IRS taxes do not apply when you fail to file tax returns if you can prove that your failing to file taxes was due to reasonable cause. According to the IRS tax regulations, reasonable cause is achieved if you show that you exercise 'ordinary business care and prudence'. If you have shown reasonable cause in your attempt to file your tax returns and you still fail to file tax, then the failure to file tax return is due to no fault of yours. Your failing to file tax return is them deemed beyond your control and IRS tax abatement will be in place. You must be able to support your argument and claims with documents beyond doubts. There are also other reasons for getting rid of penalties from the IRS which will be discussed in other section of this IRS Audit website.

I hired a professional tax return preparer. Do I have to pay penalties for not filing IRS taxes?

Unfortunately hiring a professional tax preparation person or a CPA does not shield you from penalties for not filing IRS taxes. If your CPA or tax preparation person failed to file your tax return on your behalf, it is you who suffers the penalties for not filing IRS taxes. The duty to file a federal IRS tax return is upon each citizen, not their CPAs or tax preparation companies. You cannot avoid IRS penalties for not filing taxes just because you took proper steps in hiring someone else to do it.