Legal Question in Administrative Law in California

Re: 100% penalty for late payment

You would need to give me a reference to the code or regulation section that was violated so as to give rise to the penalty.

I know of examples where there is a so-called "100% penalty" that can be assessed, e.g. where a corporation fails to deposit so-called "trust fund" taxes (taxes withheld from employee earnings), the officer(s) responsible for failing to deposit those funds with the IRS can be held personally liable for 100% of the undeposited amount. See 26 USC 6672. I do not recall whether the IRS can double collect, i.e. collect the 100% penalty from an individual then later collect from the corporate entity, (or vice-versa); my guess is that they can but as a matter of policy don't.

This law has been tested for Constitutionality and passes; therefore, others could as well.

Re: 100% penalty for late payment

I need to give you a quick supplement. After posting my first reply, I found a case that says the IRS only collects once, regardless of the portion of the tax liability paid by the original corporate taxpayer or from the responsible individual. Hence, there is no double-collecting under this law. 100% of the original liability (plus interest and other penalties, of course!) is all they can get.