Failure to Pay Penalty Relief
Get help reducing or eliminating penalties for unpaid taxes
What is the Failure to Pay Penalty?
The IRS charges a Failure to Pay penalty when you don't pay your tax liability by the due date. This penalty accrues monthly until the full balance is paid and is separate from any interest charges.
Key Facts:
- Penalty is 0.5% per month (or part of month)
- Reduced to 0.25% if installment agreement in place
- Maximum penalty is 25% of unpaid tax
- Penalty stops when balance is paid in full
Common IRS Notices for Failure to Pay
CP14
Balance due notice
CP161
Additional unpaid balance
CP501
Reminder for unpaid taxes
CP503
Urgent unpaid notice
CP504
Final notice before levy
Your Relief Options
Choose the best path based on your situation
Check First Time Abatement Eligibility
Complete penalty removal if you have a clean 3-year history
Reasonable Cause Relief
Penalty reduction based on circumstances beyond your control
Important: Time is Critical
Failure to Pay penalties continue to accrue monthly until your balance is paid. The sooner you address this, the less you'll owe in total penalties.
If you can pay now:
Contact the IRS immediately to stop penalty accrual
If you can't pay now:
Set up a payment plan to reduce penalty rate to 0.25%
Stop Penalties from Growing
Take action today to minimize your penalty burden and explore relief options.