Congress has approved the Trade Facilitation and Trade Enforcement Act of 2015 (Trade Act) (HR 644), which includes an increase in the penalty for failure to file a return. Taxpayers who fail to file returns by the deadline may be liable for a failure-to-file penalty. For taxpayers who fail to file their returns more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Under the Trade Act, if a return is filed more than 60 days after its due date, then the failure to file penalty may not be less than the lesser of $205 or 100% of the amount required to be shown as tax on the return. The provision is effective for returns required to be filed in calendar years after 2015. The President is expected to sign the measure.
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