Penalties
Civil
- § 6721 – Failure to electronically file for W-2, 1099 etc. – $50 per form up to a maximum of $250,000 if more than 250 forms are required to be filed
- § 6651(a) – Failure to File – [income, self-employment, estate, gift tax] – .5%/month or 1%/month beginning after 10 days after demand for each month or part up to 25%
- § 6651(a) – Failure to pay [after notice and demand for payment]
- § 6203 – Failure to electronically deposit, generally required if over $200,000 aggregate employment and other taxes – 10%
- § 6662 – Negligence or intentional disregard
- § 6663 – Fraud
- § 6701 – Aiding and abetting
- § 6656 – Failure to deposit penalty applies most frequently to employment taxes, but can also apply to back-up withholding, withholding tax on interest paid to foreigners, and certain excise taxes. Generally 100% of the amount due must be deposited
- de minimis Exceptions:
- Amount due is less than $1,000
- If the deposit is 98% (or the deposit less $100, if greater) (The IRS position is that this is for "bookkeeping" and other innocent errors, and not for "planning".)
Criminal
- § 7201 – attempt to evade or defeat
- § 7202 – willful failure to collect and pay over
- § 7203 – willful failure to file a return, supply information, or pay tax
- § 7204 – failure to provide employees with wage statements
- § 7205 – filing of a fraudulent exemption certificate or failure to supply required information
- § 7206 – providing any fraudulent or false statement on an document containing a statement of perjury
- § 7207 – filing fraudulent returns, statements or other documents
- § 7215 – failure to separately account for collected taxes
