TITLE 26. INTERNAL REVENUE CODE § 6656. Failure to make deposit of taxes., 26 USCS § 6656

Summary

(a) Underpayment of deposits. In the case of any failure by any person to deposit (as required by this title or by regulations of the Secretary under this title) on the date prescribed therefor any amount of tax imposed by this title in such government depository as is authorized under section 6302(c) [26 USCS § 6302(c)] to receive such deposit, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be imposed upon such person a penalty equal to the applicable percentage of the amount of the underpayment.

(b) Definitions. For purposes of subsection (a)—

(1) Applicable percentage.

(A) In general. Except as provided in subparagraph (B), the term “applicable percentage” means—

(i) 2 percent if the failure is for not more than 5 days,

(ii) 5 percent if the failure is for more than 5 days but not more than 15 days, and

(iii) 10 percent if the failure is for more than 15 days.

(B) Special rule. In any case where the tax is not deposited on or before the ...