File Your Return Even If You Can’t Pay: The Penalty Math
The single most valuable fact in tax debt: the penalty for not filing is ten times the penalty for not paying. File the return. Deal with the balance after.
Tax Debt Compass
Clear, honest guides to IRS tax debt.
Tax Debt Compass
Clear, honest guides to IRS tax debt.
Category Penalties & Interest
How IRS penalties and interest work, and when abatement is possible.
How Long Can the IRS Collect? The 10-Year Collection Statute
The collection statute expiration date (CSED) is generally 10 years from assessment — but the clock pauses during pending installment agreements, OICs, and other events.
Penalty Abatement: First-Time Abate and Reasonable Cause
First-time abatement rewards a clean compliance history; reasonable cause covers situations like serious illness or natural disaster. Both are considered case by case — never assured.
How IRS Interest Works on Unpaid Tax
IRS interest runs daily on your whole balance — tax, penalties, and previously accrued interest — at a rate the IRS resets every quarter. Here's the formula and how to look up the current rate.
IRS Failure-to-File and Failure-to-Pay Penalties, Explained
Not filing costs 5% per month; not paying costs 0.5% per month. Both cap at 25%. The single most important fact: file your return even if you can't pay.