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Petitioners further argue that section 6652(c)(1) penalties
are analogous to 6651(a)(2) additions to tax because “There is a
scaling of the penalty * * * that is tied to gross revenue--a
more appropriate measure of size for an exempt organization than
tax liability.” The section 6651(a)(2) addition to tax is
calculated as follows: “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.” (Emphasis added.) The
section 6652(c)(1) penalty is calculated as follows:
$20 for each day during which [failure to file] * * *
continues. The maximum penalty under this subparagraph
* * * shall not exceed the lesser of $10,000 or 5
percent of the gross receipts of the organization for
the year. In the case of an organization having gross
receipts exceeding $1,000,000 for any year * * * the
first sentence of this subparagraph shall be applied by
substituting “$100” for “$20” and, in lieu of applying
the second sentence of this subparagraph, the
maximum penalty under this subparagraph shall not
exceed $50,000. [Emphasis added.]
As is clear from the above-emphasized language, a section
6651(a)(2) addition to tax is directly tied to the amount of tax
due. On the other hand, a section 6652(c)(1) penalty is not tied
to the amount of tax due, but instead it is a flat daily rate of
accumulation. While the flat daily rate and the cap on the
penalty are scaled depending on the gross revenue of the
organization, they are not directly tied to the amount of tax
due. Thus, the manner in which the section 6652(c)(1) penalty
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