Is there a failure-to-file penalty if I get a refund?

No. The failure-to-file penalty is calculated as a percentage of unpaid taxes. If you are owed a refund — meaning you have no unpaid tax balance — there is no failure-to-file penalty. The IRS has no financial harm to penalize. However, you must still file within three years of the original due date to claim your refund. After that window, the refund is permanently forfeited to the U.S. Treasury.

What is the 2026 minimum failure-to-file penalty?

For tax returns required to be filed in 2026, if your return is more than 60 days late, the minimum failure-to-file penalty is the lesser of $525 or 100% of the tax owed. This means even if you owe only $200, you face a minimum $200 penalty once you are more than 60 days late. Filing on time — even without paying — completely eliminates the failure-to-file penalty.

Can the failure-to-file penalty be removed?

Yes. Two main relief options are available. First-Time Penalty Abatement (FTA) removes the penalty for taxpayers who have a clean three-year compliance history and are current on filing — starting in 2026, FTA applies automatically for eligible taxpayers. Reasonable cause abatement removes the penalty if you can document circumstances beyond your control that prevented you from filing on time.

What is the failure-to-file penalty?