Caution:

Do not use correspondence issued from Code and Edit to decide the received date. That correspondence is often sent on timely filed returns after the due date.

If the return is delinquent, compute and assess the FTF penalty using the following table:

FTF Penalty Assessment

1. Identify the penalty period: From the Return Due Date to the return received date (the number of months or any part of a month the return is late, up to a maximum of 5 months).

2. Identify the penalty rate: 4 1/2 percent per month (maximum 22 1/2 percent) or 5 percent per month (maximum 25 percent) if FTP is not assessed for the same time period.

3. Identify the amount subject to penalty: The TC 150 tax amount minus timely credits received on or before the RDD.