The IRS penalty for a late Form 990, 990-EZ or 990-PF starts the day after the due date (or the extended due date, if you filed Form 8868 on time) and grows every day until the return is filed. For a small organization the cap is a percentage of its own receipts. For a larger one it can reach tens of thousands of dollars.
Enter three numbers to see the daily rate, the cap and the penalty for the days you choose.
How this calculator works
The penalty comes from Internal Revenue Code section 6652(c)(1)(A). Congress set the base amounts, and the IRS adjusts them for inflation each year in a revenue procedure. The amounts that apply are those for the calendar year in which the return was required to be filed.
Inputs: gross receipts for the year the return covers, the year the return was required to be filed (2025, 2026 or 2027), and the number of days late.
Rules:
| Return required to be filed in | Gross receipts | Daily penalty | Maximum per return |
|---|---|---|---|
| 2025 | $1,274,000 or less | $25 | Lesser of $12,500 or 5% of gross receipts |
| 2025 | More than $1,274,000 | $125 | $63,500 |
| 2026 | $1,309,500 or less | $25 | Lesser of $13,000 or 5% of gross receipts |
| 2026 | More than $1,309,500 | $130 | $65,000 |
| 2027 | $1,339,500 or less | $25 | Lesser of $13,000 or 5% of gross receipts |
| 2027 | More than $1,339,500 | $130 | $66,500 |
The calculator multiplies the daily penalty by the days late and stops at the maximum. Gross receipts means everything the organization received during the year from all sources, before subtracting any costs.
The managers' penalty
If the IRS sends a written demand to file (or complete) the return by a set date and it isn't met, section 6652(c)(1)(B) adds a separate penalty on the person or persons responsible: $10 a day after the demand date, up to $6,000 per return for returns required to be filed in 2025 and $6,500 for 2026 and 2027. The cap is for all responsible persons combined. The calculator shows this as a separate estimate; enter the days since the demand date to use it.
Form 990-N
There is no monetary penalty for a late e-Postcard, so the calculator returns zero. Missing it three years in a row still costs the organization its exemption. See automatic revocation.
A community arts group with $180,000 of gross receipts files its calendar-2025 Form 990-EZ 75 days late.
The return was due May 15, 2026, so the 2026 amounts apply. Gross receipts are under $1,309,500, so the rate is $25 a day.
- Penalty so far: 75 × $25 = $1,875
- Cap: the lesser of $13,000 or 5% × $180,000 = $9,000, so $9,000
If the group waited 400 days, the penalty would stop at $9,000.
A regional health clinic with $2,400,000 of gross receipts files its 2025 Form 990 120 days after its extended due date of November 16, 2026. The 2026 large-organization rate applies: 120 × $130 = $15,600, against a cap of $65,000.
What it doesn't cover
- Which year applies. You choose the year. It is the year the return was due, not the year it covers: a calendar-2025 return due in 2026 uses the 2026 amounts. Use the due date calculator if you aren't sure.
- Incomplete or incorrect returns. The same penalty applies to a return filed on time but missing required information, and to a paper return filed when e-filing was required. The calculator treats those days the same way, but the start date can be harder to pin down.
- Reasonable cause. The IRS won't impose the penalty if the organization shows the failure was due to reasonable cause. The calculator shows the amount before any relief.
- Other penalties. Interest, late-payment penalties on tax due (Form 990-T or the excise tax on Form 990-PF), public disclosure penalties and state penalties aren't included.
- Other years. Returns required to be filed before 2025 or after 2027 use different inflation-adjusted amounts.
Related guides
- Form 990 late-filing penalties explains the rules and how relief works.
- Late returns and penalty relief walks through catching up and responding to a notice.
- IRS notices for nonprofits explains the letters you may receive.
- We prepare late returns and penalty responses: see late 990 and reinstatement.
Frequently asked questions
Does filing an extension stop the penalty?
If Form 8868 was filed by the original due date, no penalty runs until the extended due date. An extension filed late doesn't help, and days late are counted from the original due date.
Can the IRS waive the penalty?
Yes, if the failure was due to reasonable cause. Respond to the penalty notice by its deadline with a signed explanation of what happened, why it prevented timely filing, and what you did to file as soon as you could. Simply forgetting, or relying on someone else to file, usually isn't enough.
Why is the cap lower for our organization than the table shows?
For organizations at or under the threshold, the cap is the lesser of the dollar amount or 5% of gross receipts. An organization with $60,000 of receipts has a cap of $3,000.
Is the managers' penalty automatic?
No. It applies only after the IRS sends a written demand with a deadline and the return still isn't filed or completed by that date.
Sources
- IRS: Rev. Proc. 2023-34, section 3.54 (returns required to be filed in 2025). irs.gov
- IRS: Rev. Proc. 2024-40, section 3.54 (returns required to be filed in 2026). irs.gov
- IRS: Rev. Proc. 2025-32, section 4.53 (returns required to be filed in 2027). irs.gov
- IRS: 2025 Instructions for Form 990, section H. irs.gov
- IRS: Annual exempt organization return, due date. irs.gov
IRS figures change; inflation-adjusted amounts are updated each year. We review this page when the IRS publishes new instructions.
990IRS.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.
