Jim Gadwood Quoted on Increased Penalty for Certain Late Filings in Bloomberg BNA
"Tax Law's Penalty Hike Could Have Far-Reaching Effects"
Jim Gadwood was quoted regarding the increased penalty under the 2017 tax law for failure to timely comply with Section 6038A reporting requirements and file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. "It's a fairly significant increase to a penalty that I sense is fairly common" and somewhat routinely asserted, said Gadwood at his Feb. 9 American Bar Association Section of Taxation Meeting presentation. H.R. 1 raises the penalty from $10,000 for each taxable year in which the failure occurs to $25,000.