Common IRS Penalties: 
        - FAILURE TO FILE
        - FAILURE TO PAY

These are the two most common penalties levied by the IRS.  Of these, the most severe is Failure to File; therefore, even if you are unable to pay amount due by the due date, we stress that you at minimum submit a timely extension to file by 3/15 for calendar year businesses and 4/15 for most individuals. 

 
1. If you do not file by the deadline, you might face a
   failure-to-file penalty. If you do not pay by the due date, you could face a
   failure-to-pay penalty.
   
   
2. The failure-to-file penalty is generally more than the failure-to-pay
   penalty. So if you cannot pay all the taxes you owe, you should still file your
   tax return on time and pay as much as you can, then explore other payment
   options such as an installment agreement. We can agree your suitable strategy.
    
3. The penalty for filing late is usually 5 percent of the unpaid taxes for
   each month or part of a month that a return is late. This penalty will not
   exceed 25 percent of your unpaid taxes.
   
4. If you file your return more than 60 days after the due date or extended due
   date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid
   tax.
   
5. If you do not pay your taxes by the due date, you will generally have to pay
   a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month
   or part of a month after the due date that the taxes are not paid. This penalty
   can be as much as 25 percent of your unpaid taxes.
   
6. If you request an extension of time to file by the tax deadline and you paid
   at least 90 percent of your actual tax liability by the original due date, you
   will not face a failure-to-pay penalty if the remaining balance is paid by the
   extended due date.
   
7. If both the failure-to-file penalty and the failure-to-pay penalty apply in
   any month, the 5 percent failure-to-file penalty is reduced by the
   failure-to-pay penalty. However, if you file your return more than 60 days after
   the due date or extended due date, the minimum penalty is the smaller of $135 or
   100 percent of the unpaid tax.
   
8. You will not have to pay a failure-to-file or
   failure-to-pay penalty if you can show that you failed to file or pay on time
   because of reasonable cause and not because of willful neglect