A civil penalty or civil lawsuit is an amount of money that is assessed as a consequence of an action. The action may be in the form of criminal behavior, such as the taking of a person’s wages or property, or it may be in the form of civil wrongs, including racial discrimination, harassment, false arrest, damage to personal belongings, etc. Civil actions are generally obtained through lawsuits at the local or national level.
A civil proceeding is also a procedure in which a party obtains relief from civil penalties: A civil penalty can be collected by a party for an act of misconduct (as in a wrongful death suit), or for failure to act on a legally mandated duty (as in a lawsuit filed under the RICO Act against a motorist who hit a child in a car). In cases involving intentional misconduct, there may also be additional penalties for aiding and abetting the commission of the crime. Criminal penalties include incarceration, fines, and other possible penalties.
Civil penalties can also be collected by a party in circumstances: where conduct amounts to negligence causing serious injury or death to another. In instances involving deaths or injuries caused by negligent acts or omissions, victims’ families may recover monetary damages to assist in covering the victim’s expenses and loss of income following the occurrence of the incident. Examples of these types of cases are car accident victims, who may recover monetary penalties for damages awarded in a car accident case. In instances where a business’s failure to provide safe drinking water while working causes a customer to become sick or develops a water-borne illness, the company may be liable for negligence. Similarly, in instances where a tax position is improperly calculated leading to the filing of erroneous tax returns, the taxpayer may recover deficiency damages.
In addition to monies recovered in civil actions for criminal penalties and deficiencies: taxpayers may be assessed additional penalty assessments as a result of their inability to pay their outstanding tax obligations. In instances where a taxpayer fails to pay federal tax dues, the Internal Revenue Service has the authority to place a lien on an individual’s wages until full payment of the owed taxes have been made. In addition to interests and late fees assessed against an individual, the IRS may also assess penalty fees equal to 25% of the back-paid debt.
Not all civil and criminal penalties are created equal In some cases: taxpayers may be assessed a civil penalty for failure to obey a tax law. While failure to file an income tax return or fail to disclose an audit result constitutes a criminal penalty, not everyone will see these same consequences. If an audit triggers a civil penalty assessment, it is important to consult with a tax lawyer to determine the severity and duration of the assessment.
What is a civil penalty? A civil penalty is assessed in situations where an employee does something illegal, such as knowingly failing to pay minimum wage laws or taking illegal working accommodations.
In other cases, the IRS may issue a fine for an employer’s refusal to provide training to employees that violate company policy.