Being late
The IRS has announced the annual inflation adjustments for the year 2024. That includes not only tax rate schedules, tax tables and cost-of-living adjustments for returns (you can find those here)—but penalties for late returns and missed forms.
Here’s a look at what you need to know.
Failure To File A Tax Return
For returns required to be filed in 2024, the amount of the addition to tax under section 6651(a) for failure to file an income tax return within 60 days of the due date (determined with regard to any extensions of time for filing) will be at least $510 or 100% of the tax on the return.
Failure To File A Partnership Return
For partnership returns required to be filed in 2025, the dollar amount used to determine the amount of the penalty under section 6698(b)(1) for failure to file a partnership tax return is $245.
Failure To File An S Corporation Return
For S corporation returns required to be filed in 2025, the dollar amount used to determine the amount of the penalty under section 6699(b)(1) is $245.
Revocation Of Passport
By law, if you have a seriously delinquent tax debt, your passport may be subject to denial, revocation, or limitation. In 2024, the amount considered to be a serious delinquent tax debt is $62,000.
Liens
The purpose of a tax lien is to protect the government’s interest in your property, including your real estate and personal property. To file a lien, the IRS must assess your tax liability and send a bill. If you don’t pay in full, the IRS can file a Notice of Federal Tax Lien, which puts creditors on notice that the government has a legal right to your property. If and when you sell any of your assets, you may be forced to turn over the proceeds to the IRS to satisfy your debt.
If you pay your tax liability in full, the IRS will release the lien. The IRS may also work with you to remove the lien under other circumstances.
In 2024, a federal tax lien is not valid against certain purchasers under section 6323(b)(4) who purchased personal property in a casual sale for less than $1,900, or a mechanic’s lienor under section 6323(b)(7) who repaired or improved certain residential property if the contract price with the owner is not more than $9,520.
Levies
One of the ways that the IRS works to make sure they get paid is the use of a levy. A levy is a legal seizure of your property.
For calendar year 2024, the value of property exempt from levy under section 6334(a)(2) (typically, fuel, provisions, furniture, and other household personal effects, as well as arms for personal use, livestock, and poultry) cannot exceed $11,390. The value of property exempt from levy under section 6334(a)(3) (books and tools necessary for the trade, business, or profession of the taxpayer) cannot exceed $5,700.
Wages can also be levied. By statute, the amount that’s exempt from levy is determined by a formula. That amount is equal to the standard deduction plus an amount determined under section 6334(d)(4)(B)—for 2024, that number is $5,000 (that amount is multiplied by the number of the taxpayer’s dependents for the taxable year in which the levy occurs)—divided by 52.
Failure To File Correct Information Returns
For an information return required to be filed in 2025, the penalty amounts under section 6721 are as follows.
For persons with average annual gross receipts for the most recent three taxable years of more than $5,000,000, for failure to file correct information returns:
Failure to Timely File Information Returns (More than $5,000,000)
For persons with average annual gross receipts for the most recent three taxable years of $5,000,000 or less, for failure to file correct information returns:
Failure to Timely File Information Returns ($5,000,000 or less)
For failure to file correct information returns due to intentional disregard of the filing requirement (or the correct information reporting requirement):
Failure To Timely File Correct Information Returns
Tax Preparer Penalties
Taxpayers aren’t the only ones subject to penalties—tax preparers may be subject to them, too. In the case of any failure relating to a return or claim for refund filed in 2025, the penalty amounts under section 6695 are:
Tax Preparer Penalties
More
Adjustments also apply for failure to file a return required by exempt organizations, political organizations, and trusts. Those penalties are assessed per day up to a maximum.
For more information about missed forms, late filings, and related details, see Rev. Proc. 2023-34 (the IRS link was not live as of publication).
A Quick Word
No one likes to pay penalties. And it can be intimidating to be a late filer, especially if a significant amount of time has passed since the due date. But the old adage, “better late than never” can be quite apt here. If you’re worried about due dates and penalties, don’t ignore your obligations—consider reaching out to a tax professional.
