Failure to Pay Penalty
| Code Section | 6651(a)(2); or 26 U.S.C. 6651(a)(2) |
|---|---|
| Code Text |
In case of failure-- to pay the amount shown on tax on any return specified in paragraph (1) on or before the date prescribed for payment of such tax (determined with regard to any extension of time for payment), 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 shown as tax on such return 0.5 percent of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate; |
| Penalty Calculation | 0.5% of the amount required to be paid multiplied by each month the failure continued to a maximum of 25%. |
| Special Rule(s) |
If this penalty applies at the same time as the failure to file penalty under IRC §6651(a)(1), the failure to file penalty is reduced by 0.5%. |
|
Installment Agreement |
If an installment agreement is in effect this penalty rate is reduced from 0.5% to 0.25%. |
| Levy | The penalty rate increases from 0.5% to 1%, 10 days after a notice of intent to levy is mailed. |
| Average Amount Penalized in 2010 |
$375.10 (includes failing to show penalty) |
| Average Amount Abated in 2010 | $707 |
| Final Amount IRS Assessed | $4,482,707,000 |
| 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 |
Contact Us
Disclaimer: Teogathalaw Law does not guarantee the accuracy of the material contained on this website, or webpage. None of the material presented on this website concerning tax matters may be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the taxing authorities.
