When a taxpayer fails to pay the tax owed at the time it is due, a penalty is imposed; the penalty is normally one-half of one percent of the net tax due for each month the tax is not paid.In what situation may the penalty be increased to one percent per month?
A)If the taxpayer moves out of the country
B)If the IRS notifies the taxpayer of its intent to levy on the taxpayer's assets
C)If the taxpayer is found guilty on a drug charge
D)If the IRS perceives that the taxpayer's nonpayment is intentional fraud
E)Any one of the above situations

Question

Quizplus · Accepted Answer

The penalty for failing to pay the tax owed can be increased to one percent per month if the IRS notifies the taxpayer of its intent to levy on the taxpayer's assets. This is a measure to encourage payment and is part of the IRS's collection process.

When a Taxpayer Fails to Pay the Tax Owed at the Time