I also agree in reading the statute again.
The instructions to the form 1120 (page 5 of the 2020 instructions) state "The minimum penalty for a return that is more than 60 days late is the smaller of the tax due or $435."
This agrees to the flush language of Section 6651(a)(3):
In the case of a failure to file a return of tax imposed by chapter 1 within 60 days of the date prescribed for filing of such return (determined with regard to any extensions of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under paragraph (1) shall not be less than the lesser of $435 or 100 percent of the amount required to be shown as tax on such return.
If it is the "lesser" of the two amounts, if there is no tax due, the lesser amount will be zero.
While Congress wanted at least a minimum tax penalty, this will not apply where there is zero tax liability.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
