Ryan filed his tax return 40 days after the due date and included a check for the $1,800 balance due with the return.Ryan's failure-to-file penalty is
A)25%
B)20% per month (or partial month)
C)5% per month (or partial month) up to a maximum of 25%
D)0.5% per month (or partial month) up to a maximum of 25%

Question

Quizplus · Accepted Answer

The failure-to-file penalty is generally 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%.

Ryan Filed His Tax Return 40 Days After the Due