United States · Federal · Late-filing penalties
Late-filing penalty minimums 2027.
The minimum penalty for filing an income tax return more than 60 days late, and the monthly penalty for a late partnership or S corporation return, for returns due in 2028.
Short answer: For tax returns required to be filed in 2028 (tax year 2027) a return filed more than 60 days late has a minimum failure-to-file penalty of the lesser of $555 or 100 percent of the tax. A late partnership or S corporation return costs $265 per partner or shareholder for each month it is late, up to 12 months.
Estimate an individual late-filing penalty
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Partnership or S corporation return
The minimum penalty
Section 6651(a)(1) adds 5 percent of the unpaid tax for each month or part of a month a return is late, up to 25 percent. When the failure to pay penalty of 0.5 percent a month also applies, section 6651(c)(1) reduces the failure-to-file addition by that amount, so in practice it is 4.5 percent a month for up to five months. A separate rule sets a floor: if a return is filed more than 60 days after the due date, including extensions, the addition cannot be less than the lesser of a dollar amount or 100 percent of the tax. Revenue Procedure 2026-35 sets that dollar amount at $555 for returns due in 2028.
| Penalty | Returns due 2027 (tax year 2026) | Returns due 2028 (tax year 2027) |
|---|---|---|
| Minimum failure-to-file penalty, more than 60 days late | Lesser of $535 or 100% of tax | Lesser of $555 or 100% of tax |
| Partnership, per partner per month (section 6698) | $260 | $265 |
| S corporation, per shareholder per month (section 6699) | $260 | $265 |
Partnerships and S corporations
A partnership or S corporation that files late, or with incomplete information, is charged a monthly amount for each person who was a partner or shareholder during any part of the year, for each month or part of a month, up to 12 months. The statute multiplies the dollar amount by the number of persons, so a partnership with four partners that is five months late owes $265 times 4 times 5, or $5,300. The penalty is assessed against the entity.
How the monthly math works for individuals
The first five months are the most expensive: 4.5 percent for failure to file and 0.5 percent for failure to pay is 5 percent a month, which reaches 25 percent after five months. After that only the 0.5 percent failure-to-pay rate keeps accruing, up to 25 percent in total for that penalty. The calculator assumes none of the tax was paid by the due date and counts every part of a month as a month.
What changed from 2026
The minimum penalty rose from $535 to $555 for returns due in 2028, and the partnership and S corporation amounts from $260 to $265 per person per month. The 5 percent and 0.5 percent monthly rates, the 25 percent caps and the 60-day trigger are statutory and did not change.
Worked example (2027)
A taxpayer owes $4,000 and files 20 days late: one month, so failure to file is 4.5 percent of $4,000, which is $180, plus 0.5 percent failure to pay, $20, for $200. Filing 150 days late (five months) gives $900 plus $100, $1,000, which is 25 percent. A taxpayer who owes only $300 and files 90 days late would compute 4.5 percent times three months of $300, $40.50, but the minimum is the lesser of $555 or 100 percent of the tax, $300, so the failure-to-file addition is $300, plus $4.50 failure to pay, $304.50. A four-partner partnership five months late owes $5,300.
Common mix-ups
- The minimum applies only after 60 days. A return a few weeks late is not subject to the $555 floor.
- It is the lesser of two amounts. If the tax is under $555 the penalty cannot exceed the tax itself.
- Failure to file and failure to pay are different penalties. They overlap for the first five months, with the file penalty reduced.
- Entity penalties count heads, not income. A partnership is charged per partner whatever it earned.
- An extension changes the due date. The 60 days run from the due date including extensions.
Method
For individuals the tool counts a month for each 30 days late, rounded up, and applies 4.5 percent of the unpaid tax for up to five months for failure to file and 0.5 percent for up to 50 months for failure to pay. When the return is more than 60 days late it raises failure to file to the lesser of $555 or the tax. For entities it multiplies $265 by the number of persons and months, up to 12. It ignores interest, payments made before or after the due date and reasonable-cause relief. Figures were read on November 9, 2026.
What this does not cover
- Interest on unpaid tax and penalties.
- Reasonable-cause relief, first-time abatement and installment agreement rates.
- Estimated tax underpayment penalties, which are separate.
- State late-filing penalties.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Revenue Procedure 2026-35, section 3.57 (failure to file tax return) (retrieved November 9, 2026); IRS Revenue Procedure 2026-35, section 3.60 (partnership) (retrieved November 9, 2026); IRS Revenue Procedure 2026-35, section 3.61 (S corporation) (retrieved November 9, 2026)
- IRS Revenue Procedure 2025-32, section 4.52, 4.55 and 4.56 (the 2026 amount) (retrieved November 9, 2026)
- 26 U.S.C. section 6651 (failure to file tax return or to pay tax), text at Cornell Legal Information Institute (retrieved November 9, 2026)
- 26 U.S.C. section 6698 (failure to file partnership return), text at Cornell Legal Information Institute (retrieved November 9, 2026)
Frequently asked questions
What is the minimum late-filing penalty for 2027 returns?
For returns required to be filed in 2028 and more than 60 days late, it is the lesser of $555 or 100 percent of the tax required to be shown.
What was the minimum for 2026 returns?
It was the lesser of $535 or 100 percent of the tax.
What is the penalty for a late partnership return in 2027?
$265 per partner for each month or part of a month it is late, up to 12 months.
And for an S corporation?
The same $265 per shareholder per month, up to 12 months, under section 6699.
How much is the monthly penalty on an individual return?
Five percent of the unpaid tax for each month late up to 25 percent, reduced to 4.5 percent a month while the 0.5 percent failure-to-pay penalty also applies.
Does the penalty apply if I have no tax due?
The failure-to-file addition is computed on tax required to be shown, so a return with no tax due has no such penalty, though other penalties can apply.
Can the penalty be waived?
Reasonable cause can remove it. This page does not model abatement.
Not legal or tax advice
This page is general information from an unofficial guide, not legal, payroll or tax advice. Tax law changes and your facts may differ. Confirm figures with the IRS or a tax professional before you file or set payroll. Nothing you type is sent anywhere.