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Trade bill increases failure-to-file penalty

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Tax Hot Topics - Trade bill increases failure-to-file penaltyThe Trade Facilitation and Trade Enforcement Act of 2015, signed into law by the president on Feb. 24, increases the minimum penalty under Section 6651(a), for failing to timely file a tax return or pay tax, from $135 to $205. This increase sets the minimum penalty for failure to timely file at $205 or 100% of the tax required to be shown on the return, whichever is less. Such penalties may be abated if a taxpayer can show that the failure was due to reasonable cause and not willful neglect.

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