Can the IRS impose penalties if a return is not filed/tax not paid? Posted on February 16, 2016March 16, 2022 By Mike Butler Yes, the IRS can impose penalties if a tax return is not timely filed or if a tax liability is not timely paid. As with all IRS penalties, the rules are complex. However, a taxpayer may avoid a penalty if he or she shows reasonable cause. Please log in to view more of this post Login INVESTOR BOOKS, Tax Updates Tags:tax update, mike grinnan cpa