Tuesday, January 5, 2016

Trade Preferences Extension Act of 2015 …

Originally published by Thompson & Knight LLP.

Posted by Mary McNulty and Lee Meyercord
MaryMcNultytn        LeonoraMeyercordtn

The Trade Preferences Extensions Act of 2015 (the “Act”) (available here) dramatically increased penalties for failure to file information returns for returns required to be filed after December 31, 2015:

  • Failure to file penalty is increased from $100 to $250 per return and the maximum annual penalty is increased from $1.5 million to $3 million.
  • For failures that are corrected within 30 days, the penalty is increased from $30 to $50 per return, and the maximum annual penalty is increased from $250,000 to $500,000.
  • For failures corrected after 30 days but before August 1, the penalty is increased from $60 to $100 per return, and the maximum annual penalty is increased from $500,000 to $1.5 million.
  • Lower limitation on the maximum annual penalty for taxpayers with gross receipts under $5 million is increased from $500,000 to $1 million, from $75,000 to $175,000 for failures corrected within 30 days, and from $500,000 to $1.5 million for failures corrected before August 1.
  • Penalty for intentional disregard is increased from $250 to $500 per return and the maximum annual penalty is increased from $1.5 million to $3 million.

If you have any questions about the increased penalties on the failure to file information returns, please contact one of us or any of the other Tax lawyers at Thompson & Knight.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.



from Texas Bar Today http://ift.tt/1VF328p
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