The President signed 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 on February 24, 2016. 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.
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