Julian filed a valid extension for his 2020 tax return, giving him until October 15, 2021, tofile his return. He filed his return on November 30 and paid $1,000 of tax due. For what period of time will Julian be subject tothe failure-to-file and failure-to-pay penalties?
A)2 months for both
B)2 months for failure tofile and 8 months for failure topay
C)8 months for both
D)None of the above.

Question

Julian filed a valid extension for his 2020 tax return, giving him until October 15, 2021, tofile his return. He filed his return on November 30 and paid $1,000 of tax due.  For what period of time will Julian be subject tothe failure-to-file and failure-to-pay penalties?
A)2 months for both
B)2 months for failure tofile and 8 months for failure topay
C)8 months for both
D)None of the above.

Quizplus · Accepted Answer

Julian will be subject to a failure-to-file penalty for 2 months, from the extended due date of October 15, 2021, until he filed on November 30, 2021. He will be subject to the failure-to-pay penalty for 8 months, from the original due date of April 15, 2021, until he paid on November 30, 2021.

Julian Filed a Valid Extension for His 2020 Tax Return