What Are Penalties for Not Filing a Tax Return?

If you don't file your tax return on time and owe taxes, the IRS charges a "failure-to-file" penalty of 5% of the unpaid tax per month (up to 25% total). This is much steeper than the failure-to-pay penalty, so even if you can't pay, you should always file on time or get an extension. If your return is more than 60 days late, there's a minimum penalty — the lesser of $485 (2024) or 100% of unpaid tax. The IRS may waive the penalty if you have reasonable cause. If you're owed a refund, there's no failure-to-file penalty — but you still need to file within 3 years to claim your refund.