Taxpayer Penalties

Free CPA REG (Taxation & Regulation) lesson in Ethics, Professional Responsibilities and Federal Tax Procedures. 15 min read, ~2,310 words.

Failure to file (§6651(a)(1)): 5% of unpaid tax per month, max 25%; minimum penalty if 60 days late. Failure to pay (§6651(a)(2)): 0.5% of unpaid tax per month, max 25%; combined cap with FtF is 25%. When both run, FtF is reduced by FtP for the same months, combined rate...