A taxpayer will be penalized for filing a return late unless the taxpayers

A taxpayer will be penalized for filing a return late

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A taxpayer will be penalized for filing a return late unless the taxpayer's failure to timely file the return was due toreasonable cause and not due to willful neglect. The penalty is five percent of the net amount of tax due from thetaxpayer if the return is filed no more than one month late. For each additional month (or fraction of a month) thatthe return is late, the penalty is increased by an additional five percent. If a taxpayer owes a penalty for filing areturn late and a penalty for making a late payment of tax, the late filing penalty is reduced by the amount of thelate payment penalty. The maximum amount of the penalty is 25 percent of the net amount of tax due from thetaxpayer.If a taxpayer's failure to file a return is fraudulent, the penalty is 15 percent of the net amount of tax due from thetaxpayer if the return is filed no more than one month late. For each additional month (or fraction of a month) thatthe return is late, the penalty is increased by an additional 15 percent. The maximum amount of the penalty for afraudulent failure to file is 75 percent of the net amount of tax due from the taxpayer.Unless the taxpayer's failure to pay the tax was due to reasonable cause and not due to willful neglect, thetaxpayer will be penalized if the taxpayer fails to pay the amount shown on a return (reduced by any paymentsmade and any credits that the taxpayer may claim) on or before its due date (including any extension of time forpayment) or if the taxpayer fails to pay any amount demanded by the IRS within 21 calendar days after the IRSgives notice of the amount due and demands payment (10 business days if the amount for which the notice anddemand is made equals or exceeds $100,000).The amount of the penalty is 0.5 percent of the net amount of taxdue from the taxpayer or amount demanded by the IRS if the payment is no more than one month late. For eachadditional month (or fraction of a month) that the payment is late, the penalty is increased by an additional 0.5percent. The maximum amount of the penalty is 25 percent of the net amount of tax due from the taxpayer oramount demanded by the IRS. If a taxpayer timely files a return and enters into an installment agreement to paythe amount of tax due, the penalty for late payment of amounts due under the installment agreement will be 0.25percent of the amount owed by the taxpayer if the payment is no more than one month late. For each additionalmonth (or fraction of a month) that the payment is late, the penalty is increased by an additional 0.25 percent.Individuals, trusts, and estates have to make estimated income tax payments unlessthey expect to owe less than $1,000 (after subtracting taxes withheld and credits)for the tax year or they expect their withheld taxes and credits to equal at least 90percent of their tax for the tax year (66 2/3 percent if they are a farmer or fisherman)or 100 percent of their tax for the preceding tax year [110 percent if their adjustedgross income for the preceding tax year exceeded $150,000 ($75,000 if they are
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