{"id":11807,"date":"2025-03-23T23:43:36","date_gmt":"2025-03-24T03:43:36","guid":{"rendered":"https:\/\/www.jdavidtaxlaw.com\/?p=11807"},"modified":"2025-03-23T23:45:00","modified_gmt":"2025-03-24T03:45:00","slug":"avoid-the-irs-failure-to-pay-penalty-5-ways-to-fix-your-unpaid-taxes-fast","status":"publish","type":"post","link":"https:\/\/www.jdavidtaxlaw.com\/blog\/avoid-the-irs-failure-to-pay-penalty-5-ways-to-fix-your-unpaid-taxes-fast\/","title":{"rendered":"Avoid the IRS Failure to Pay Penalty \u2013 5 Ways to Fix Your Unpaid Taxes Fast"},"content":{"rendered":"\t\t
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Avoid the IRS Failure to Pay Penalty \u2013 5 Ways to Fix Your Unpaid Taxes Fast!<\/span><\/h1>

If you owe taxes but haven\u2019t paid them yet, you may be facing the IRS Failure to Pay Penalty. This penalty adds 0.5% of your unpaid taxes per month, <\/span>up to 25% of the total balance <\/span><\/a>. Worse, interest accrues daily on top of that, increasing your overall tax burden. Ignoring unpaid taxes can lead to severe IRS collection actions, including tax liens, levies, and even <\/span>wage garnishments<\/span><\/a>. It’s important to remember that <\/span>April 15 is the deadline for filing and paying taxes each year<\/span>. Missing this deadline without filing an extension can trigger penalties and interest charges that quickly add up.<\/span><\/p>

Many taxpayers, both individuals and business owners, find themselves overwhelmed by tax debt and unsure of how to resolve it. The good news? The IRS provides multiple solutions to help you fix unpaid taxes fast and avoid additional penalties. This guide outlines five effective ways to resolve tax debt quickly and get back into compliance with the IRS.<\/span><\/p>

1. File Your Taxes On Time <\/span><\/h2>

One of the biggest mistakes taxpayers make is not filing their tax return when they cannot afford to pay. However, not filing is actually worse than not paying. The IRS imposes a Failure to File Penalty of 5% per month (capped at 25% of the unpaid tax amount), which is <\/span>ten times higher<\/span><\/a> than the Failure to Pay Penalty. According to the IRS Data Book, <\/span>in fiscal year 2023, over <\/span>$40 billion in failure-to-file penalties<\/span><\/a> were assessed,<\/span> impacting millions of taxpayers. This underscores the importance of filing on time, even if full payment isn’t possible.<\/span><\/p>

For businesses, timely filing is critical. Companies that fail to file payroll tax returns <\/span>(Form 941)<\/span><\/a> face Trust Fund Recovery Penalties, which can hold business owners and officers personally liable for unpaid payroll taxes.<\/span><\/p>

Steps to Take Right Now<\/span><\/h3>