| Code Section | 6662; or 26 U.S.C. 6662 |
|---|---|
| Code Text |
(a) Imposition of penalty.--If this section applies to any portion of an underpayment of tax required to be shown on a return, there shall be added to the tax an amount equal to 20 percent of the portion of the underpayment to which this section applies.
(b) Portion of underpayment to which section applies.--This section shall apply to the portion of any underpayment which is attributable to 1 or more of the following: (1) Negligence or disregard of rules or regulations. (2) Any substantial understatement of income tax. (3) Any substantial valuation misstatement under chapter 1. (4) Any substantial overstatement of pension liabilities. (5) Any substantial estate or gift tax valuation understatement. (6) Any disallowance of claimed tax benefits by reason of a transaction lacking economic substance (within the meaning of section 7701(o)) or failing to meet the requirements of any similar rule of law. (7) Any undisclosed foreign financial asset understatement. |
| Penalty Calculation |
Twenty (20)% of the underpayment |
| Special Rule(s) |
|
| Average Amount Penalized in 2010 |
$2,279 |
| Average Amount Abated in 2010 | $4,158 |
| Final Amount IRS Assessed | $828,140,000 |
| Teogatha Law Penalty Abatement Service |
Teogatha Law will review your penalty notice, hold conference calls with you, prepare a power of attorney form, communicate with the IRS on your behalf, collect and inspect IRS records, conduct legal research, draft a penalty abatement letter, and notify you of the IRS's decision. Penalty Abatement Service. |
| Reasons for Abatement | Reasonable Cause |
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