The Trade Facilitation and Trade Enforcement Act raises the minimum penalty for the failure to file tax returns from $135 to $205 for returns required to be filed after 2015. The returns affects are income, estate, and gift tax returns. The penalty for filing a return late is generally 5% of the unpaid tax per month the return is late, up to a maximum of 25% – and the minimum penalty is now the LESSER of $205 for returns over 60 days late OR 100% of the tax due on the return. Note that you may request abatement of a penalty if you have reasonable cause for filing the tax return late.
The law also bars states from taxing internet access permanently. For the handful of states that are currently taxing internet access (Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas, and Wisconsin), the tax must be eliminated by June 30, 2020.