Reminder:

If a notice has been held, then update other penalties on the notice as required.

Figure the TC 160 amount using the following chart.

Number of Months

TC 160 (no TC 276)

TC 160 (TC 276 on module)

1 month

Underpayment x 5%

Underpayment x 4.5% (.045)

2 months

Underpayment x 10%

Underpayment x 9% (.09)

3 months

Underpayment x 15%

Underpayment x 13.5% (.135)

4 months

Underpayment x 20%

Underpayment x 18% (.18)

5 months

Underpayment x 25%

Underpayment x 22.5% (.225)

Attach adjustment tag to the return, being careful that you do not cover any portion of the entity, and put return in gusset folder. You may still use the pink adjustment tag if preferred.

Attach completed Form 6502 to gusset folder.

To figure the interest on the Retype, use CC COMPA and input per the table below:

Figure 3.14.2-4

Please click here for the text description of the image.

Due date of return

space

23C date

space

Underpayment plus FTF penalty amount (if no extension or past extension date)

XXXXXXXX

sp sp

$$$$.$$

Figure 3.14.2-5

Please click here for the text description of the image.

If there are late payments, figure interest per the table below:

Due date of return

space

23C date

space

Underpayment sp sp

$$$$.$$

(Due date of return)

sp

(1st late payment date)

sp

(Total tax minus any timely payments, plus TC 160 penalty amount)

XXXXXXXX

sp sp

$$$$.$$

(Repeat 1st late payment date)

sp

(2nd late payment date, if necessary)

sp

(Subtract 1st late payment)

If the notice disposition is retype,

Change Interest Field to the new amount found on COMPA. Do not assess the interest, but include it in the retype.

Select the Penalty Tab and input 01 amount (TC 160 amount).