What’s New

Increased failure-to-file penalty. The minimum penalty under section 6651(a) for the failure to file Form 1066 within 60 days of the due date has increased to the smaller of the tax due or $525. The penalty under section 6698 that the IRS may charge when no tax is due has increased to $255 for each person who was a residual interest holder in the REMIC at any time during the year for each month or part of a month the return is late, for up to 12 months. For more information, see Late filing penalty, later.

Direct deposit. If you have access to U.S. banking services or electronic payment systems, you should use direct deposit for any refunds by completing Section II, lines 4b, 4c, and 4d.