During any month in which both the failure to file penalty and the failure to pay penalty apply, the failure to file penalty is increased by the amount of the failure to pay penalty.

Question

Quizplus · Accepted Answer

The failure to file penalty is not increased by the amount of the failure to pay penalty. Instead, the IRS reduces the failure to file penalty by the amount of the failure to pay penalty for any month both penalties apply.

During Any Month in Which Both the Failure to File