Do You Know Failure to Pay Penalty?

As per IRC 6651(a)(2)

If a taxpayer fails to pay the tax shown as due on the return, a penalty of 0.5% per month (up to a maximum of 25%) is imposed on the tax due. The penalty amount is doubled if the taxpayer fails to pay the tax once a deficiency assessment has been made.

This penalty does not apply during the automatic 6-month extension of time to file period if at least 90% of the actual tax liability was paid in on or before the due date of the return and the balance paid when the return was filed.

If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued.

Sure Financials and Tax Services LLC

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