Note:

The maximum FTP penalty rate charged on the unpaid balance of each assessment is 25%.

Reduced Penalty Rate: The reduction of the fixed amount or percentage charged based on specific criteria with respect to a penalty. An example of this is the 1/4 Percent Penalty Rate provision. For information regarding the 1/4 Percent Penalty Rate for IRC 6651 FTP penalties, see IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate - IRC 6551(h).

Penalty Amount: Computed on the balance of unpaid tax at the beginning of each monthly period.