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 ?
To attest to this fact, they can select "Informed of Tax Penalty Risk" when filling out an application at CoveredCA.
21) This Article, in contrast, introduces the collateral tax sanction as a new form of tax penalty that neither requires noncompliant taxpayers to pay the government money nor requires the taxing authority to apply it.
The existence and amount of a tax penalty is assumed to be one of these factors.
Since one of the exemptions to the 10% tax penalty on distributions prior to age 59 1/2 was upon death of the "holder," it became important to establish which party to an annuity was the "holder.
The Lakers had to pay Grant's salary but could avoid the dollar-for-dollar luxury tax penalty on it.
The penalty would overlap with many existing penalty provisions including the general underpayment of tax penalty in section 6662 and the recently enacted section 6662A penalty for underpayments of tax for reportable transactions.
Like other retirement accounts, withdrawals and other distributions taken prior to age 59 1/2 are subject to a 10% federal tax penalty.
This is despite the fact that, until now, Renault's diesel unit has incurred a three per cent tax penalty for UK business users, because it has not been clean enough to meet the most stringent exhaust emissions standards.
Occasionally we list multiple extra items--such as financial planning, a yearend tax planning meeting, additional services in connection with the sale of rental property, researching cost basis of mutual funds sold, calculation of S corporation basis, preparation of the next year's estimated taxes, prior years' income annualization for estimated tax penalty reduction, alternative minimum tax credit calculation or any of a few dozen other items.
ASAE argued that the 1993 law establishing a tax penalty on association activities amounts to a government restriction on association free speech.
The "reasonable cause"/"willful neglect" standard has been part of the tax penalty provisions since 1916, and Congress has not amended these provisions to create a different standard for the failure to pay trust fund taxes.
To avoid a tax penalty, such firms would have to cut back benefits.