Mr Fiocchi filed his unextended 2017 Form 1040 on July 22, 2018, and had no reasonable cause for the delinquency. The return showed a $1,906 overpayment of tax (refund due). Compute Mr Fiocchi's late-filing and late-payment penalty.

Question

Quizplus · Accepted Answer

Mr Fiocchi filed his return within the automatic six-month extension period, which ended on October 15, 2018. Since he had no reasonable cause for the late filing, he is liable for a late-filing penalty, but since he had no tax due on the return, there is no late-payment penalty. The late-filing penalty is based on the amount of tax due, which is zero in this case, so the penalty is also zero. Therefore, the correct answer is A) -0-.

Mr Fiocchi Filed His Unextended 2017 Form 1040 on July