Failure to File Penalty
| Code Section | 6651(a)(1); or 26 U.S.C. 6651(a)(1) |
|---|---|
| Code Text |
In case of failure-- to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), subchapter A of chapter 51 (relating to distilled spirits, wines, and beer), or of subchapter A of chapter 52 (relating to tobacco, cigars, cigarettes, and cigarette papers and tubes), or of subchapter A of chapter 53 (relating to machine guns and certain other firearms), on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; |
| Penalty Calculation | 5% of the amount of tax multiplied by each month the failure continued to a maximum of 25%. There is a minimum penalty of $135. |
| Special Rule(s) | If this penalty applies at the same time as the failure to pay penalty under IRC §6651(a)(2) the failure to file penalty is reduced by 0.5% when both penalties are applied. |
| Average Amount Penalized in 2010 |
$1,663 (Amount based upon all delinquency penalties) |
| Average Amount Abated in 2010 | $2,730 |
| Final Amount IRS Assessed | $3,675,982,000 |
| 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, Undue Hardship, Erroneous IRS Advice, Erroneous Tax Advisor Advice, Disaster |
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Page last revised : February 02, 2012