Note:

Use the IRC 6551 FTF Penalty Tool to assist in calculating the FTF penalty after adjustment when FTP also applies. The tool is located on the Penalties Knowledge Base (KB) site and is owned and maintained by the Office of Servicewide Penalties (OSP). It provides guidance, resources, and information for all employees considering assessment and/or abatement of penalties.

To correctly recalculate the FTF penalty, first determine the penalty period, the number of months or part of a month the return is late. When the return has been processed correctly, the number of months a return is late can be found in IDRS on CC TXMOD to the right of field MO-DELQ>. If the delinquency period is in question, count the number of months from the latest of the RDD, extended due date, or disaster due date, to the date the return was filed (return received date). This is the number of months subject to penalty.