Bennie files his 2021 income tax return on April 15, 2022, showing a tax liability of $10,000 and a balance due of $1,000. Bennie does not pay the $1,000 until June 30, 2022. The failure-to-pay penalty is $15.

Question

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The failure-to-pay penalty is typically 0.5% of the unpaid taxes for each month or part of a month that the tax remains unpaid, starting after the due date of the return until the tax is paid. In Bennie's case, the penalty for 2.5 months (April 15 to June 30) on the $1,000 unpaid balance would indeed be $15 (0.5% * 2.5 * $1,000).

Bennie Files His 2021 Income Tax Return on April 15