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date prescribed therefor (determined with
regard to any extension of time for filing),
unless it is shown that such failure is due
to reasonable cause and not due to willful
neglect, there shall be added to the amount
required to be shown as tax on such return
5 percent of the amount of such tax if the
failure is for not more than 1 month, with an
additional 5 percent for each additional
month or fraction thereof during which such
failure continues, not exceeding 25 percent
in the aggregate;
(2) to pay the amount shown as tax on
any return specified in paragraph (1) on or
before the date prescribed for payment of
such tax (determined with regard to any
extension of time for payment), unless it is
shown that such failure is due to reasonable
cause and not due to willful neglect, there
shall be added to the amount shown as tax on
such return 0.5 percent of the amount of such
tax if the failure is for not more than 1
month, with an additional 0.5 percent for
each additional month or fraction thereof
during which such failure continues, not
exceeding 25 percent in the aggregate; * * *
(b) Penalty Imposed on Net Amount Due.--For
purposes of--
(1) subsection (a)(1), the amount of tax
required to be shown on the return shall be
reduced by the amount of any part of the tax
which is paid on or before the date
prescribed for payment of the tax and by the
amount of any credit against the tax which
may be claimed on the return,
(2) subsection (a)(2), the amount of tax
shown on the return shall, for purposes of
computing the addition for any month, be
reduced by the amount of any part of the tax
which is paid on or before the beginning of
such month and by the amount of any credit
against the tax which may be claimed on the
return, * * *
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Last modified: May 25, 2011