IRS Penalties: Failure-to-File & Pay

IRS Penalties: Failure-to-File & Pay | CPA Stafford VA

IRS penalties explained – avoid failure-to-file and failure-to-pay fines with CPA tax resolution services in Northern Virginia AI TAX CONSULTING PLLC | CPA Firm in Northern Virginia

If you live in Stafford, Fredericksburg, or Northern Virginia, understanding IRS penalties is essential. Whether you file late or cannot pay on time, the IRS can assess serious penalties that add up quickly. Here are eight key points every taxpayer should know about failure-to-file and failure-to-pay penalties.

1. Failure-to-File vs. Failure-to-Pay

Failure-to-file penalty: Applies when you miss the filing deadline.
Failure-to-pay penalty: Applies when you don’t pay your balance due by the deadline.

2. Which Penalty Is Worse?

The failure-to-file penalty is generally higher. Even if you cannot pay in full, file your return on time and explore payment plans.

3. Failure-to-File Penalty Rates

The penalty is usually 5% of unpaid taxes per month, up to 25% of your total tax owed.

4. Minimum Penalty After 60 Days

If you file more than 60 days late, the minimum penalty is $135 or 100% of the unpaid tax — whichever is smaller.

5. Failure-to-Pay Penalty Rates

The penalty is 0.5% of unpaid taxes per month after the due date, maxing out at 25% of the unpaid balance.

6. Extensions Can Reduce Penalties

If you filed an extension and paid at least 90% of your taxes by the April deadline, you may avoid failure-to-pay penalties if the rest is paid on time.

7. Combined Penalties

If both apply in one month, the IRS reduces the 5% failure-to-file penalty by the failure-to-pay penalty.

8. Penalty Relief Options

The IRS may remove penalties if you can show reasonable cause. This is where working with a local CPA in Stafford or Fredericksburg can make a big difference.

Why Work with a Local CPA in Northern Virginia?

At AI Tax Consulting PLLC, we help individuals and small businesses in Stafford, Fredericksburg, and Northern Virginia resolve IRS issues, minimize penalties, and set up affordable payment plans. We also work with remote clients nationwide through our secure online tax portal.

Whether you’re dealing with back taxes, penalty notices, or simply want peace of mind, Assel Ibrayeva, CPA, is here to help.

📍 Serving clients in:

Stafford County, VA
Fredericksburg, VA
Northern Virginia & the DMV region
🌐 Remote nationwide tax services available

For any tax preparation or IRS representation contact our office.

To learn more on various individual and business penalties check IRS website:
https://www.irs.gov/payments/penalties

Author: Assel Ibrayeva

Website: https://aitaxconsulting.com

Assel Ibrayeva, CPA, is the founder of AI Tax Consulting PLLC, a licensed CPA firm based in Northern Virginia serving individuals and businesses nationwide. With over a decade of professional experience in accounting and taxation, she provides trusted expertise in individual tax preparation, small business accounting, bookkeeping, tax planning, IRS representation, and international compliance. Her practice is known for handling complex tax situations, including multi-state filings, crypto and digital asset taxation, foreign reporting, and IRS back tax resolution. Assel works closely with small business owners, entrepreneurs, and professionals to deliver practical strategies that reduce tax burdens and ensure compliance. Assel earned her Master of Accountancy from The George Washington University and a Bachelor of Science in Finance from Coastal Carolina University. She is also an Advanced Certified QuickBooks ProAdvisor, helping clients streamline their financial management. Dedicated to providing clear guidance and ethical service, Assel combines technical knowledge with a personalized approach. Her mission is to simplify the tax process and empower clients to make informed financial decisions with confidence.