The 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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