Types of Penalties and Interest
Internal Revenue Manual Part 3. Submission Processing · 2026-10-03 edition · updated 2026-10-04 · United States
Computer Generated TC
Reversal
Name of Penalty
NRPS/OLNR Penalty Code
Manual Input TC
Reversal
Adjustment Generated Notice
TC 166
TC 167
Failure to File
01
TC 160
TC 161
YES
TC 176
TC 177
Estimated Tax
02
TC 170
TC 171
YES
TC 186
TC 187
Failure to Deposit
03, 11, 41, 42, 43, 44, 54, 55, 56, 57, 58
TC 180
TC 181
YES
TC 196
TC 197
Interest
None
TC 340
TC 341
NO
TC 238
TC 239
Daily Delinquency
10
TC 234
TC 235
YES
TC 246
TC 247
Miscellaneous
28
TC 240
TC 241
YES
TC 276
TC 277
Failure to Pay
07
TC 270
TC 271
YES
TC 286
TC 287
Dishonored Check
04
TC 280
TC 281
YES
TC 776
TC 777
Credit Interest
None
TC 770
TC 771
NO
None
None
Fraud
05
TC 320
TC 321
YES
None
None
Negligence
06
TC 350
TC 351
YES
Once a penalty or interest is adjusted manually (REQ 54/47) it becomes restricted. The computer can no longer adjust that penalty or interest, and the transaction code must be manually addressed with any future adjustments.
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