Failure to pay penalty: the IRS charge for tax paid late
The IRS failure to pay penalty is 0.5% of unpaid tax a month, up to 25%. It drops to 0.25% on a payment plan and rises to 1% after a levy notice.
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Read the full guide: Failure to Pay Penalty: How IRS Late Payment Penalties Work
Transcript
Failure to pay penalty: the IRS charge for tax paid late
The IRS failure to pay penalty is 0.5% of your unpaid tax for each month or part of a month after the due date, up to 25%.
Standard rate: 0.5% of unpaid tax per month or part of a month.
Cap: 25% of the unpaid tax.
On an approved plan, filed on time: 0.25% per month.
The rate doubles to 1% a month if you do not pay within 10 days after the IRS sends a notice of its intent to levy.
