Editing Taxation in the United States (section)

=== Types of penalties ===

====Information return penalty====

This penalty is applied when the information or tax returns are not filed on time or correctly, i.e., in case there are inconsistencies in the information this penalty will be applied to the user. In this case, charges may apply, as established in 2024, depending on the period in which the user responds after having been notified.  The penalty may range from USD 60, in case the response is made 30 days later, to USD 630 for willful disregard.<ref name="IRS:3">{{cite web |title=Information Return Penalties |url=https://www.irs.gov/payments/information-return-penalties |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Failure to File Penalty====

This penalty is imposed on the individual who does not file the income tax return on the due date. In this case the fine is equivalent to 5% of the taxes that have not been paid each month, however, the ceiling is up to 25%. On the other hand, in case the penalty for not filing the return and the penalty for not paying the respective taxes are combined in the same month, the penalty for not filing is reduced by the amount of the penalty for not paying, resulting in a combined penalty of 5% for each month or part of the month that the return is late. After 5 months of non-payment of any amount, the non-filing penalty is reduced in full, however, the non-payment penalty is capped at 25%. Finally, in case the return has been filed more than 60 days late the charges can reach up to USD 485 after December 12, 2023.<ref name="IRS:4">{{cite web |title=Failure to File Penalty |url=https://www.irs.gov/payments/failure-to-file-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Failure to pay penalty====

This penalty is applied to the customer who has not paid his taxes before their due date. In this case the penalty is fixed with a percentage based on the amount of taxes that have not been paid. As previously mentioned, this penalty will not exceed 25%.<ref name="IRS:5">{{cite web |title=Failure to pay penalty |url=https://www.irs.gov/payments/failure-to-pay-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Accuracy-related penalty====

This penalty is applied when the person pays less than what is stated on his or her tax return. The reasons why people fail to pay the corresponding amount may be because they have not reported the actual or full amount of their income, on the other hand, it may happen that the person has applied for some type of extension or credit for which he/she does not qualify. Within this penalty the IRS can proceed in two ways. It can apply a Negligence or disregard of the rules or regulations penalty, which is due to the lack of attention and the correct following of the U.S. tax laws to complete the tax return. It is considered that the person may recklessly or intentionally disregard the established rules or regulations. On the other hand, there may also be the case where a Substantial understatement of income tax penalty applies, which applies when the person understates his tax liability by 10% of the tax shown on his return or equals USD 5,000. However, if the person has qualified for a business deduction, the percentage is 5% or USD 5,000.<ref name="IRS:6">{{cite web |title=Accuracy-related penalty |url=https://www.irs.gov/payments/accuracy-related-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Erroneous claim for refund or credit====

This penalty applies when the person has filed a claim for a refund or return of income tax for an excessive amount and no reasonable cause applies for such claim. The penalty is equal to 20% of the excessive amount that has been claimed.<ref name="IRS:7">{{cite web |title=Erroneous claim for refund or credit |url=https://www.irs.gov/payments/erroneous-claim-for-refund-or-credit |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Failure to Deposit Penalty====

This penalty is applied when the individual has not paid the appropriate employment taxes on time and in the proper amount. These employment taxes include taxes on the individual's income, social security and health care, and federal unemployment. The percentage of the penalty depends on how many days the payment is overdue from the due date. From 1 to 5 days is equivalent to a penalty of 2% of the amount that has not been paid, however, if the delay exceeds 15 days the percentage can increase up to 10%.<ref name="IRS:8">{{cite web |title=Failure to Deposit Penalty |url=https://www.irs.gov/payments/failure-to-deposit-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Tax preparer penalties====

The tax return preparers who engage in misconduct are hereby penalized, i.e., there may be a possibility that an agent certified to prepare a third party's tax returns may fail to comply with the established tax regulations. Charges will be made based on the number of violations, the type of regulations violated, inflation rates, and the number of tax years on record.<ref name="IRS:9">{{cite web |title=Tax preparer penalties |url=https://www.irs.gov/payments/tax-preparer-penalties |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Dishonored Check or Other Form of Payment Penalty====

This penalty will simply be alleviated when the person's bank provider does not accept the user's check or other form of payment. This may be because there is insufficient money in the bank account to cover the amount of tax owed. In this case the amount of the penalty is 25 USD when the amount owed is less than 1,250 USD. In case the debt exceeds this amount, the penalty is 2% of the amount owed.<ref name="IRS:10">{{cite web |title=Dishonored Check or Other Form of Payment Penalty |url=https://www.irs.gov/payments/dishonored-check-or-other-form-of-payment-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref> 

====Underpayment of Estimated Tax by Corporations Penalty====

This type of penalty is intended for corporations that have not made sufficient payments based on estimated tax or simply have not paid in a timely manner. Generally, corporations make these payments on a quarterly basis when they expect to pay over USD 500 on their tax return. The amount of the penalty will depend on the amount of the underpayment, the period overdue for payment and the quarterly interest rate mentioned above.<ref name="IRS:11">{{cite web |title=Underpayment of Estimated Tax by Corporations Penalty |url=https://www.irs.gov/payments/underpayment-of-estimated-tax-by-corporations-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====Underpayment of Estimated Tax by Individuals Penalty====

Like the previous one, the difference is that this penalty is applied to individuals, estates, or trusts. The calculation of the amount is made under the same conditions as the penalty to a corporation.<ref name="IRS:12">{{cite web |title=Underpayment of Estimated Tax by Individuals Penalty |url=https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>

====International information reporting penalties====

This penalty is applied when the tax filer has its financial activity established abroad and does not comply with U.S. tax rules and regulations. In this case monthly interest is charged until the debtor pays the taxes based on the tax regulations where he files his taxes, in this case U.S.<ref name="IRS:13">{{cite web |title=International information reporting penalties |url=https://www.irs.gov/payments/international-information-reporting-penalties |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>