penalty

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penalty

A payment required as a result of breaking the law or sometimes for breaching the terms of a contract. Most contract drafters assiduously avoid the term because private penalties are not enforceable. Instead, contract drafters use the terms liquidated damages, delay payments, or late fees.Even the prepayment penalty is really not a penalty but compensation to a lender for the loss of income suffered when a loan is paid off earlier than the terms allow.

References in periodicals archive ?
The poll also found that the $95 tax penalty is as ineffective to compel younger respondents to buy health insurance as it was for survey respondents as a whole-61 percent for 18 to 24-year-olds and 55 percent for 25 to 34-year-olds.
I urge members of Congress to do what they've done four times over the past four years, vote to include marriage tax penalty relief," said Connor.
If withdrawals and other distributions are taken prior to age 59u, a 10% federal tax penalty may apply.
The marriage tax penalty forces approximately 25 million American couples to pay an average of $1,450 more in taxes simply because they are married.
Congressional leadership, House and Senate bill co- sponsors, and Family Research Council (FRC) have scheduled a Valentine's Day theme news conference to discuss Thursday's vote on the Marriage Tax Penalty Relief Act.
A situation may arise when retirement savings might be needed for a possible emergency in the near future, when a Federal tax penalty of 10% is imposed on early withdrawals.
As the professional organization representing more than 4,800 tax executives throughout the United States and Canada, TEI is pleased to submit these comments on the procedure for Joint Committee review of refund claims and the FSC estimated tax penalty.
Employees and employers can make annual tax-free contributions, up to certain limits, and the funds may be used without tax penalty to pay for qualified medical expenses.
45) A tax penalty is discharged if the underlying tax liability is discharged.
For the individual taxpayer, Davis said, the feature most likely to catch him or her off-guard is the fact that an individual can no longer rely on the previous year's tax for relief from a tax penalty, if he or she was assessed a penalty for failure to pay the correct amount of estimated tax in any of the three preceding years.
Thus, we submit that there is no policy reason to deny a safe harbor from the estimated tax penalty with respect to FSCs and their related suppliers.