[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR31]

[Page 881]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 31_ALCOHOL BEVERAGE DEALERS--Table of Contents
 
                    Subpart H_Payment of Special Tax
 
Sec.  31.109  Penalty for failure to file return or to pay tax.

    (a) Failure to file return. Except during the suspension period 
described in Sec.  31.21(b), any person required by this part to file a 
return on Form 5630.5 who fails to file the return on or before the last 
date prescribed in Sec.  31.104 shall pay, as an addition to the tax, a 
delinquency penalty, unless it is shown that such failure is due to 
reasonable cause and not due to willful neglect. The delinquency penalty 
for failure to file the return on or before the last date prescribed 
shall be 5 percent of the amount required to be shown as tax on the 
return if the failure is for not more than one month; with an additional 
5 percent for each additional month or fraction thereof during which 
such delinquency continues, but not more than 25 percent in the 
aggregate. During the suspension period, a failure to file a return may 
result in a penalty under 26 U.S.C. 5603(b).
    (b) Failure to pay tax. Any person who files a return on Form 5630.5 
under the provisions of this part and who fails to pay the amount shown 
as tax on the return on or before the date prescribed in Sec.  31.104 
for payment of such tax, shall pay, as an addition to the tax, a 
penalty, unless it is shown that such failure is due to reasonable cause 
and not due to willful neglect. The penalty for failure to pay the tax 
on or before the date prescribed for payment shall be 0.5 percent of the 
amount shown as tax on the return if the failure is not more than one 
month; with an additional 0.5 percent for each additional month or 
fraction thereof during which the failure continues, but not exceeding 
25 percent in the aggregate.
    (c) Limitations. With respect to any return on Form 5630.5, the 
amount of the addition under paragraph (a) of this section shall be 
reduced by the amount of the addition under paragraph (b) of this 
section for any month to which an addition to tax applies under both 
paragraphs (a) and (b) of this section. If the amount of tax required to 
be shown as tax on the return is less than the amount shown as tax on 
such return, the penalties prescribed in paragraphs (a) and (b) of this 
section shall be applied by substituting such lower amount.

(68A Stat. 821, as amended; 26 U.S.C. 6651)

[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]