IRS code 276: Failure-to-pay penalty
Quick answerA penalty for paying tax after the due date: generally 0.5% of the unpaid tax for each month or part of a month, up to 25%. If you filed on time, it drops to 0.25% a month while an approved payment plan is in place.
Transcript code276
MeaningFailure-to-pay penalty
Action needed?Yes — see steps
What happens next
Keeps growing monthly until the balance is paid.
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What you should do
- Pay in full or set up a payment plan to cut the rate
- Ask for first-time penalty abatement if your last three years are clean
Frequently asked questions
What does IRS code 276 mean?
A penalty for paying tax after the due date: generally 0.5% of the unpaid tax for each month or part of a month, up to 25%. If you filed on time, it drops to 0.25% a month while an approved payment plan is in place.
What should I do?
Pay in full or set up a payment plan to cut the rate Ask for first-time penalty abatement if your last three years are clean
How long does it take?
Keeps growing monthly until the balance is paid.
Sources
- IRS: Understanding your IRS notice or letter
- IRS: Get Transcript
- Taxpayer Advocate Service (independent help inside the IRS)
Written by the editorial team and checked against the official sources above. See our editorial policy.
By the TranscriptCodes Editorial Team · Last reviewed 2026-11-12.