Failure to Show Penalty
| Code Section | 6651(a)(3); or 26 U.S.C. 6651(a)(3) |
|---|---|
| Code Text |
In case of failure-- to pay any amount in respect of any tax required to be shown on a return specified in paragraph (1) which is not so shown (including an assessment made pursuant to section 6213 (b)) within 21 calendar days from the date of notice and demand therefor (10 business days if the amount for which such notice and demand is made equals or exceeds $100,000), 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 of tax stated in such notice and demand 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 shown 21 calendar days (10 if amount is more than $10,000) after notice and demand 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%. The penalty rate rises to 1% ten days after a notice of intent to levy is sent. |
| Average Amount Penalized in 2010 |
$375.10 (includes failing to pay 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 |
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