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For tax years beginning after December 31, 1993, Failure to Deposit - IRC 6656 — Federal Tax Deposits • For returns due in 2020, the penalty rate is $205
the law requires corporations to pay their estimated tax Insufficient/Late and Incomplete Record of Federal • For returns due between January 31, 2018 and
in 4 quarterly payments (unless income is seasonal or Tax Liability — We charged a penalty because it December 31, 2019, the base penalty rate is $200.
the corporation used an annualized income method to appears that you didn’t deposit the correct amounts of • For returns due on or before December 31, 2017,
estimate its tax) based on the lesser of 100% of either tax on time. the base penalty rate is $195.
the tax shown on the current year tax return or the prior Also, your Record of Federal Tax Liability was These penalty amounts are subject to annual inflation
year tax return. Each installment must be at least 25% of incomplete or illegible, or the liability amounts you adjustments.
the tax shown on the return. reported didn’t equal the net taxes for the tax period. S Corporation Late Filing – IRC 6699 — We charged
The procedure for reasonable cause does not Therefore, we averaged the total tax liability and a penalty because, according to our records, you filed
apply to corporate estimated tax penalties. For more distributed it equally throughout the tax period. We your S Corporation return late. The penalty is $220 for
information on when the estimated tax penalty may be applied your deposits to the averaged liabilities in the each person who was a shareholder at any time during
reduced or removed, see Form 2220 and its instructions date order we received them. We figured the penalty on the tax year, for each month or part of a month that the
for your tax year. any tax not deposited, deposited late, or not deposited return was filed late, for up to 12 months. If you think we
Failure to Deposit - IRC 6656(b) — Federal Tax in the correct amounts. should remove or reduce this penalty, see “Removal of
Deposits Insufficient/Late — We charged a penalty If you believe we computed the penalty incorrectly, Penalties - Reasonable Cause.”
because it appears that you didn’t deposit the correct please send a complete breakdown of your tax liability • For returns due after January 1, 2023 the penalty
amounts of tax on time. We used your Record of Tax on Form 4977 (for tax years before 1993), Form 941 amount is $220.
Liability to determine where to apply your deposits. We Schedule B (for tax years 1993 and later), Form 945- • For returns due between January 1, 2021 and
applied your deposits in the date order we received A, or Form 943-A. If you think we should remove or December 31, 2022 (without regard to extensions)
them. We figured the penalty on any tax not deposited, reduce this penalty, see “Removal of Penalties — the base penalty rate is $210.
deposited late, or not deposited in the correct amounts. Reasonable Cause.” Also see Publication 15, Circular • For returns due in 2020, the penalty rate is $205
If you think we should remove or reduce this penalty, E — Employer’s Tax Guide or Publication 51, Circular • For returns due between January 31, 2018 and
see “Removal of Penalties — Reasonable Cause.” Also A – Agricultural Employer’s Tax Guide for deposit December 31, 2019, the base penalty rate is $200.
see Publication 15, Circular E — Employer’s Tax Guide requirements. • For returns due on or before December 31, 2017,
or Publication 51, Circular A — Agricultural Employer’s Incomplete Return - IRC 6652 — We charged a the base penalty rate is $195.
Tax Guide for deposit requirements. penalty because, according to our records, you didn’t These penalty amounts are subject to annual inflation
Dishonored Check or Other Form of Payment - IRC file a complete return. For Forms 990, 990EZ, and adjustments.
6657 — We charged a penalty because your bank did 990PF, the penalty is: (1) $20 a day for each day your Filing Incomplete Return – IRC 6698 — We charged
not honor your check or other form of payment. For return is incomplete, if your gross annual receipts are a penalty because, according to our records, your
checks or other forms of payment of $1,250 or more, the equal to or less than $1,094,500. The penalty may partnership return was incomplete and you didn’t give
penalty is 2% of the amount of the check or other form not be more than $10,500 or 5% of your gross annual us the information we requested. The penalty is $220
of payment. For checks or other forms of payment of receipts, whichever is less. (2) $105 a day for each day for each person who was a partner at any time during
less than $1,250, the penalty is the amount of the check your return is incomplete, if your gross annual receipts the tax year, for each month or part of a month, for up
or other form of payment, or $25, whichever is less. If exceed $1,094,500, but the penalty may not be more to 12 months. If you think we should remove or reduce
you think we should remove or reduce this penalty, see than $54,500. For all other forms, the penalty is $10 a this penalty, see “Removal of Penalties — Reasonable
“Removal of Penalties - Reasonable Cause.” day for each day your return is incomplete. The penalty Cause.”
may not be more than $5,000. These penalty amounts
Fraud - IRC 6663 — We charged you a penalty for fraud. are subject to annual inflation adjustment for returns • For returns due after January 1, 2023 the penalty
The penalty is 75% of the tax you didn’t pay due to fraud. due after 2014. If you think we should remove or reduce amount is $220.
this penalty, see “Removal of Penalties — Reasonable • For returns due between January 1, 2021 and
Paying Late - IRC 6651 — We charged a penalty Cause.” December 31, 2022 (without regard to extensions)
because, according to our records, you didn’t pay your the base penalty rate is $210.
tax on time. Initially, the penalty is 1/2% of the unpaid Fraud - IRC 6651(f) — Late Filing Penalty — The law • For returns due in 2020, the penalty rate is $205.
tax for each month or part of a month you didn’t pay allows us to increase the penalty for filing late if you • For returns due between January 31, 2018 and
your tax. The penalty can’t be more than 25% of the tax didn’t file on time because of fraud. The penalty is 15% December 31, 2019, the base penalty rate is $200.
paid late. of the amount of tax you should have reported on your • For returns due on or before December 31, 2017,
Note: Effective for months beginning after December tax return for each additional month or part of a month the base penalty rate is $195.
31, 1999, the failure to pay tax penalty (FTP) for you didn’t file your return. The total penalty may not be These penalty amounts are subject to annual inflation
individuals who file a tax return on or before the due more than 75% of the tax you didn’t pay. adjustments.
date (including extensions), is limited to half the usual Penalty Removed — We removed the penalty we Filing Incomplete Return – IRC 6699 — We charged
rate (0.25% rather than 0.5%) for any month in which an charged you and we are reviewing your account. We will a penalty because, according to our records, your S
Installment Payment Agreement is in effect. let you know the results. corporation return was incomplete and you didn’t give
If we issue a Notice of Intent to Levy and you don’t us the information we requested. The penalty is $220
pay the balance due within 10 days from the date of the Penalty on Tips - IRC 6652(b) — We charged a penalty for each person who was a shareholder at any time
notice, the penalty increases to 1% a month. because, according to our records, you didn’t report during the year, for each month or part of a month the
If you think we should remove or reduce this penalty, your tips to your employer. The penalty is 50% of the return was filed late, for up to 12 months. If you think we
see “Removal of Penalties — Reasonable Cause.” social security or railroad retirement tax on the tips you should remove or reduce this penalty, see “Removal of
Failure to Comply With Other Information Reporting didn’t report. If you think we should remove or reduce Penalties — Reasonable Cause.”
Requirements - IRC 6723 — We charge a penalty when this penalty, see “Removal of Penalties — Reasonable • For returns due after January 1, 2023 the penalty
you do not comply with specified information reporting Cause.” amount is $220.
requirements, including IRC 6109 taxpayer identification Examining Officer’s Report - IRC 6751(a) —According • For returns due between January 1, 2021 and
number (TIN) reporting requirements. to our records, your Examining Officer gave you a report December 31, 2022 (without regard to extensions)
The penalty is $5 for each missing TIN the law that explained the reason for this penalty. the base penalty rate is $210.
• For returns due in 2020, the penalty rate is $205.
requires on returns and statements due by December Late Payment Penalty Removed — We removed the • For returns due between January 31, 2018 and
31, 1989. late payment penalty we previously charged you. December 31, 2019, the base penalty rate is $200.
For all missing TINs in any calendar year, the
penalty can’t be more than $100,000. If you think we False W-4 Penalty - IRC 6682 — We charged a $500 • For returns due on or before December 31, 2017,
should remove or reduce this penalty, see “Removal of penalty because it appears you made false statement(s) the base penalty rate is $195.
Penalties — Reasonable Cause.” on your Form W-4. If you think we should remove or These penalty amounts are subject to annual inflation
Filing Late - IRC 6652(c) - Exempt Organizations reduce this penalty, see “Removal of Penalties — adjustments.
and Certain Trusts. We charged a penalty because, Reasonable Cause.” – Missing Schedules K-1
– Missing Schedule L (Balance Sheets)
according to our records, you filed your return late. Partnership Late Filing – IRC 6698 — We charged – Missing Schedules K-1 TINs (5 or more)
For Forms 990, 990EZ, and 990PF, the penalty is: (1) a penalty because, according to our records, you filed – Missing Schedules K-1 and Schedule L (Balance
$20 a day for each day your return is late, if your gross your partnership return late. The penalty is $220 for Sheet)
annual receipts are equal to or less than $1,129,000. each person who was a partner at any time during the – Missing Schedules K-1 and Schedule K-1 TINs
The penalty may not be more than $11,000 or 5% of tax year, for each month or part of a month that the – Missing Schedule L (Balance Sheet) and Schedule
your gross annual receipts, whichever is less. (2) $110 a return was filed late, for up to 12 months. If you think we K-1 TINs
day for each day your return is late, if your gross annual should remove or reduce this penalty, see “Removal of – Missing Schedules K-1, Schedule K-1 TINs, and
receipts exceed $1,129,000. The penalty may not be Penalties – Reasonable Cause.” Schedule L (Balance Sheet)
more than $56,000. For all other forms, the penalty is – Missing Schedule K
$10 a day for each day your return is late. The penalty If a pass-through partner of an audited partnership fails
may not be more than $5,000. These penalty amounts to timely file the partnership adjustment tracking report – Missing Schedule K and Schedules K-1
are subject to annual inflation adjustment for returns under section 6226(b)(4)(A)(i), then the pass-through – Missing Schedule K and Schedule L (Balance
due after 2014. If you think we should remove or reduce partner can be assessed a failure to file penalty under Sheet)
this penalty, see “Removal of Penalties — Reasonable section 6698. – Missing Schedule K and Schedule K-1 TINs (5 or
Cause.” • For returns due after January 1, 2023 the penalty more)
amount is $220. – Missing Schedule K, Schedules K-1, and
• For returns due between January 1, 2021 and Schedules L (Balance Sheet)
December 31, 2022 (without regard to extensions)
the base penalty rate is $210.
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