If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension, what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?
A)$0
B)$6
C)$60
D)none of the above

Question

Quizplus · Accepted Answer

The failure-to-pay penalty is calculated based on the amount of tax not paid by the due date, which is generally April 15. Since Brad paid the full amount of his tax ($10,000) by the time he filed his return, there is no unpaid tax to apply the penalty to, resulting in a $0 penalty.

If Brad Files His Last Year's Individual Tax Return on July