A calendar- year individual taxpayer files last year's income tax return on July 1 of the current year. No extension was requested, and there is not a reasonable cause for the late filing. The return shows a balance due of $800 of tax. The late filing penalty is

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The late filing penalty is typically 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25%. Since the return was filed 3 months late (April 15 to July 1), the penalty is 15% of $800, which is $120.

A Calendar- Year Individual Taxpayer Files Last Year's Income Tax