Waiver of False Withholding Information Penalty

IRC §6682

The IRS may waive the $500 penalty for incorrect withholding statements if the taxpayer's actual tax liability is fully covered by credits and estimated tax payments.

Eligibility

Individuals whose total income tax for the year (after credits) is equal to or less than their total estimated tax payments.

Frequently Asked Questions

Who is eligible for the Waiver of False Withholding Information Penalty?

Individuals whose total income tax for the year (after credits) is equal to or less than their total estimated tax payments.

How does the Waiver of False Withholding Information Penalty work?

The IRS may waive the $500 penalty for incorrect withholding statements if the taxpayer's actual tax liability is fully covered by credits and estimated tax payments.

What law authorizes the Waiver of False Withholding Information Penalty?

The Waiver of False Withholding Information Penalty is authorized under IRC §6682 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §6682

Source: Internal Revenue Code, Title 26, United States Code

§ 6682. False information with respect to withholding(a) Civil penaltyIn addition to any criminal penalty provided by law, if—(1) any individual makes a statement under section 3402 or section 3406 which results in a decrease in the amounts deducted and withheld under chapter 24, and (2) as of the time such statement was made, there was no reasonable basis for such statement, such individual shall pay a penalty of $500 for such statement. (b) ExceptionThe Secretary may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under subtitle A for the taxable year are equal to or less than the sum of—(1) the credits against such taxes allowed by part IV of subchapter A of chapter 1, and (2) the payments of estimated tax which are considered payments on account of such taxes. (c) Deficiency procedures not to applySubchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect to the assessment or collection of any penalty imposed by subsection (a). (Added Pub. L. 89–368, title I, § 101(e)(4)(A), Mar. 15, 1966, 80 Stat. 61; amended Pub. L. 91–172, title I, § 101(j)(55), Dec. 30, 1969, 83 Stat. 532; Pub. L. 93–406, title II, § 1016(a)(23), Sept. 2, 1974, 88 Stat. 931; Pub. L. 97–34, title VII, § 721(a), Aug. 13, 1981, 95 Stat. 340; Pub. L. 97–248, title III, §§ 306(a), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98–67, title I, §§ 102(a), 107(a), Aug. 5, 1983, 97 Stat. 369, 382.)

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Legal Sources

US Code (Official) — 26 USC §6682 → Cornell Law Institute — 26 USC §6682 → Search IRS.gov for IRC §6682 → Treasury Regulations (26 CFR) →

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