Taxpayer Penalties

Free CPA REG (Taxation & Regulation) lesson in Ethics, Professional Responsibilities and Federal Tax Procedures. 16 min read, ~2,405 words.

Failure to file (§6651(a)(1)): 5% of net unpaid tax per month, max 25%. Failure to pay (§6651(a)(2)): 0.5% of net unpaid tax per month, max 25%, running from April 15 regardless of any extension. When both run, FtF is reduced by FtP for shared months, so the combined rate is...