- 2 -
|
For tax years beginning after December 31, 1993, Incomplete Return - IRC 6652 — We charge this Filing Incomplete Return – IRC 6698 — We charge a
the law requires corporations to pay their estimated tax penalty when you don’t file a complete return. For Forms penalty when your partnership return is incomplete and
in 4 quarterly payments (unless income is seasonal or 990, 990EZ, and 990PF, the penalty is: (1) $20 a day you don’t provide us the information when requested.
the corporation used an annualized income method to for each day your return is incomplete, if your gross The penalty is $220 for each person who was a partner
estimate its tax) based on the lesser of 100% of either annual receipts are equal to or less than $1,094,500. at any time during the tax year, for each month or
the tax shown on the current year tax return or the prior The penalty may not be more than $10,500 or 5% of part of a month, for up to 12 months. If you think we
year tax return. Each installment must be at least 25% of your gross annual receipts, whichever is less. (2) $105 a should remove or reduce this penalty, see “Removal of
the tax shown on the return. day for each day your return is incomplete, if your gross Penalties — Reasonable Cause.”
The procedure for reasonable cause does not annual receipts exceed $1,094,500, but the penalty • For returns due after January 1, 2023 the penalty
apply to corporate estimated tax penalties. For more may not be more than $54,500. For all other forms, amount is $220.
information on when the estimated tax penalty may be the penalty is $10 a day for each day your return is • For returns due between January 1, 2021 and
reduced or removed, see Form 2220 and its instructions incomplete. The penalty may not be more than $5,000. December 31, 2022 (without regard to extensions)
for your tax year. These penalty amounts are subject to annual inflation the base penalty rate is $210.
Failure to Deposit - IRC 6656(b) — Federal Tax adjustment for returns due after 2014. If you think we • For returns due in 2020, the penalty rate is $205.
Deposits Insufficient/Late — We charge penalties for should remove or reduce this penalty, see “Removal of • For returns due between January 31, 2018 and
filing and paying late when you file your return late and Penalties — Reasonable Cause.” December 31, 2019, the base penalty rate is $200.
don’t pay your tax when it is due. We use your Record of Fraud - IRC 6651(f) — Late Filing Penalty — The law • For returns due on or before December 31, 2017,
Tax Liability to determine where to apply your deposits. allows us to increase the penalty for filing late if you the base penalty rate is $195.
We apply your deposits in the date order we receive didn’t file on time because of fraud. The penalty is 15% These penalty amounts are subject to annual inflation
them. We figure the penalty on any tax not deposited, of the amount of tax you should have reported on your adjustments.
deposited late, or not deposited in the correct amounts. tax return for each additional month or part of a month Filing Incomplete Return – IRC 6699 — We charge a
If you think we should remove or reduce this penalty, you didn’t file your return. The total penalty may not be penalty when your S corporation return is incomplete and
see “Removal of Penalties — Reasonable Cause.” Also more than 75% of the tax you didn’t pay. you don’t provide us information when requested. The
see Publication 15, Circular E — Employer’s Tax Guide Penalty Removed — We removed the penalty we penalty is $220 for each person who was a shareholder
or Publication 51, Circular A — Agricultural Employer’s charged you and we are reviewing your account. We will at any time during the year, for each month or part of a
Tax Guide for deposit requirements. let you know the results. month the return was filed late, for up to 12 months. If
you think we should remove or reduce this penalty, see
Dishonored Check or Other Form of Payment - IRC Penalty on Tips - IRC 6652(b) — We charge this “Removal of Penalties — Reasonable Cause.”
6657 — We charge a penalty when your bank does penalty when you don’t report your tips to your employer. • For returns due after January 1, 2023 the penalty
not honor your check or other form of payment. For The penalty is 50% of the social security or railroad amount is $220.
checks or other forms of payment of $1,250 or more, the retirement tax on the tips you didn’t report. If you think • For returns due between January 1, 2021 and
penalty is 2% of the amount of the check or other form we should remove or reduce this penalty, see “Removal December 31, 2022 (without regard to extensions)
of payment. For checks or other forms of payment of of Penalties — Reasonable Cause.” the base penalty rate is $210.
less than $1,250, the penalty is the amount of the check • For returns due in 2020, the penalty rate is $205.
or other form of payment, or $25, whichever is less. If Examining Officer’s Report - IRC 6751(a) —According • For returns due between January 31, 2018 and
you think we should remove or reduce this penalty, see to our records, your Examining Officer gave you a report December 31, 2019, the base penalty rate is $200.
“Removal of Penalties - Reasonable Cause.” that explained the reason for this penalty. • For returns due on or before December 31, 2017,
Fraud - IRC 6663 — We charge a penalty for fraud. The Late Payment Penalty Removed — We removed the the base penalty rate is $195.
penalty is 75% of the tax you didn’t pay due to fraud. late payment penalty we previously charged you. These penalty amounts are subject to annual inflation
adjustments.
Paying Late - IRC 6651 — We charge a penalty when False W-4 Penalty - IRC 6682 — We charge a $500 – Missing Schedules K-1
you don’t pay your tax on time. Initially, the penalty is penalty when you make false statement(s) on your – Missing Schedule L (Balance Sheets)
1/2% of the unpaid tax for each month or part of a month Form W-4. If you think we should remove or reduce – Missing Schedules K-1 TINs (5 or more)
you don’t pay your tax. The penalty can’t be more than this penalty, see “Removal of Penalties — Reasonable – Missing Schedules K-1 and Schedule L (Balance
25% of the tax paid late. Cause.” Sheet)
Note: Effective for months beginning after December – Missing Schedules K-1 and Schedule K-1 TINs
31, 1999, the failure to pay tax penalty (FTP) for Partnership Late Filing – IRC 6698 — We charge a
individuals who file a tax return on or before the due penalty when you file your partnership return late. The – Missing Schedule L (Balance Sheet) and Schedule
date (including extensions), is limited to half the usual penalty is $220 for each person who was a partner at K-1 TINs
rate (0.25% rather than 0.5%) for any month in which an any time during the tax year, for each month or part of a – Missing Schedules K-1, Schedule K-1 TINs, and
Installment Payment Agreement is in effect. month that the return was filed late, for up to 12 months. Schedule L (Balance Sheet)
If we issue a Notice of Intent to Levy and you don’t If you think we should remove or reduce this penalty, see – Missing Schedule K
pay the balance due within 10 days from the date of the “Removal of Penalties – Reasonable Cause.” – Missing Schedule K and Schedules K-1
– Missing Schedule K and Schedule L (Balance
notice, the penalty increases to 1% a month. If a pass-through partner of an audited partnership fails Sheet)
If you think we should remove or reduce this penalty, to timely file the partnership adjustment tracking report – Missing Schedule K and Schedule K-1 TINs (5 or
see “Removal of Penalties — Reasonable Cause.” under section 6226(b)(4)(A)(i), then the pass-through more)
Failure to Comply With Other Information Reporting partner can be assessed a failure to file penalty under – Missing Schedule K, Schedules K-1, and
Requirements - IRC 6723 — We charge a penalty when section 6698. Schedules L (Balance Sheet)
you do not comply with specified information reporting • For returns due after January 1, 2023 the penalty – Missing Schedule K, Schedules K-1, and Schedule
requirements, including IRC 6109 taxpayer identification amount is $220. K-1 TINs
number (TIN) reporting requirements. • For returns due between January 1, 2021 and – Missing Schedule K, Schedule L (Balance Sheet),
The penalty is $50 for each missing TIN the law December 31, 2022 (without regard to extensions) and Schedule K-1 TINs
requires on returns and statements due. the base penalty rate is $210. – Missing Schedule K, Schedules K-1, Schedule
For all missing TINs in any calendar year, the • For returns due in 2020, the penalty rate is $205 L (Balance Sheet), and Schedule K-1 TINs (5 or
penalty can’t be more than $100,000. If you think we • For returns due between January 31, 2018 and more)
should remove or reduce this penalty, see “Removal of December 31, 2019, the base penalty rate is $200.
Penalties — Reasonable Cause.” • For returns due on or before December 31, 2017, Accuracy-Related Penalty - IRC 6662 — For returns
the base penalty rate is $195. due after 12/31/89, we charge a 20% penalty on the
Filing Late - IRC 6652(c) - Exempt Organizations and These penalty amounts are subject to annual inflation amount of additional tax attributable to Negligence,
Certain Trusts. We charge this penalty when you file adjustments. Substantial Understatement, Substantial Valuation
your return late. For Forms 990, 990EZ, and 990PF, the Misstatement, Substantial Overstatement of Pension
penalty is: (1) $20 a day for each day your return is late, S Corporation Late Filing – IRC 6699 — We charge a Liabilities, or Substantial Estate or Gift Tax Valuation
if your gross annual receipts are equal to or less than penalty when you file your S Corporation return late. The Understatement. The penalty is increased to 40% for a
$1,129,000. The penalty may not be more than $11,000 penalty is $220 for each person who was a shareholder Gross Valuation Misstatement.
or 5% of your gross annual receipts, whichever is less. at any time during the tax year, for each month or part of For returns due before 1/1/90, the applicable
(2) $110 a day for each day your return is late, if your a month that the return was filed late, for up to 12 months. percentage rate varies with the specific penalty and the
gross annual receipts exceed $1,129,000. The penalty If you think we should remove or reduce this penalty, see amount of the increased tax.
may not be more than $56,000. For all other forms, the “Removal of Penalties - Reasonable Cause.”
penalty is $10 a day for each day your return is late. The • For returns due after January 1, 2023 the penalty Accuracy-Related Penalty on Understatements with
penalty may not be more than $5,000. These penalty amount is $220. Respect to Reportable Transactions - IRC 6662(A) —
amounts are subject to annual inflation adjustment for • For returns due between January 1, 2021 and For tax years ending after October 22, 2004, we charge
returns due after 2014. If you think we should remove December 31, 2022 (without regard to extensions) a penalty for a reportable transaction understatement.
or reduce this penalty, see “Removal of Penalties — the base penalty rate is $210. Generally, the penalty is 20 percent of the reportable
Reasonable Cause.” • For returns due in 2020, the penalty rate is $205 transaction understatement. The penalty is increased to
• For returns due between January 31, 2018 and 30 percent if the disclosure requirement in IRC section
December 31, 2019, the base penalty rate is $200. 6664(d)(3)(A) is not met.
• For returns due on or before December 31, 2017,
the base penalty rate is $195.
These penalty amounts are subject to annual inflation
adjustments.
2
|