Total Owed
$6,478
Total Owed
FTF Penalty
$1,125
FTP Penalty
$150
Interest
$203
Summary
IRS penalties and interest bring your total from $5,000 to $6,478 after 6 months. Filing on time - even without full payment - significantly reduces penalties.
The Failure-to-File penalty is 5% of unpaid taxes per month (or partial month), up to a maximum of 25% of the tax owed.
The Failure-to-Pay penalty is 0.5% of unpaid taxes per month, also capped at 25%. It applies even if you filed on time.
When both penalties apply in the same month, the FTF penalty is reduced by the FTP amount, so the combined rate is 5% (not 5.5%) per month.
The IRS charges interest on unpaid tax plus accumulated penalties. The rate is the federal short-term rate plus 3%, compounding daily.
Monthly Accrual
6 rows
| Month | FTF Penalty | FTP Penalty | Interest | Cumulative |
|---|---|---|---|---|
| 1 | $225 | $25 | $33 | $5,283 |
| 2 | $225 | $25 | $34 | $5,567 |
| 3 | $225 | $25 | $34 | $5,851 |
| 4 | $225 | $25 | $34 | $6,135 |
| 5 | $225 | $25 | $34 | $6,419 |
| 6 | $0 | $25 | $34 | $6,478 |
Estimate based on IRS penalty and interest rules. Actual interest is compounded daily. Does not account for penalty abatement, installment agreements, or offers in compromise. Not tax advice.