IRS Failure to file fee (Days of Interest charge don't match my submission)

[BrianM2020]

Hi all. I submitted my 2019 return ~2 weeks late (submitted 8/2 | accepted 8/5) per TurboTax. However, I just received an IRS failure to file for the full 30 days (8/15). How can I argue against these incremental August fees? The respective IRS site only offers ways to pay the existing fine.

[VolvoGirl]

Did you have a tax due?  Is is a failure to file or to PAY tax due?  They probably got a tax due payment later than when you filed.

[BrianM2020]

Failure to file  "we assess penalty for each month or part of month the return is late". On the IRS website, it notes it received payment the same day as the submission (8/2). However, they still went on to assess the full 30 days for the period at hand (7/15-8/15). I'm just attempting to cut this penalty in half but there isn't a clear method to challenge the fee within the IRS portal.

[Critter]

The penalty is correct. Read the IRS instructions again... The penalty is for every month or part of a month so you owe a penalty for the rest of July and part of August in full. They charge you the full month's penalty even if it's only for one day. Thus you have no leg to stand on to reduce the penalty.

[Critter]

The failure to file penalty could have been avoided if you had simply filed an extension timely.  The IRS is also going to hit you with a late payment penalty plus interes.

[BrianM2020]

What is the significance of "part of a month" then when calculating the interest amount?

[Anonymous · Accepted solution]

your options are to pay the amount or call the number on the notice for explanation.  do it ASAP because you only have until the date in the notice to respond. 

the failure to file penalty is a flat 5% per month or fraction of a month (4.5% if there is also a failure to pay penalty which is 1/2% per month or fraction of a month).   so even filing and paying 1 day late invokes this 5% penalty.   interest depends on when and how payment was made and may have nothing to do with date of acceptance. 

[BrianM2020]

That makes more sense. It's the penalty and then the accrued interest for the respective days. Understood, ty.

[BrianM2020]

Thanks for the snark.