Gretchen's 2014 tax return, due April 15, 2015, was filed on July 15, 2015. Her tax due with the return was $1,200. Gretchen owes a late filing penalty of $180.

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Quizplus · Accepted Answer

The late filing penalty for a return filed after the due date (April 15) but before the extended deadline (October 15) is 5% of the tax due per month, up to a maximum of 25%. In Gretchen's case, the return was filed 3 months late (July 15 - April 15 = 3 months), so the penalty would be 15% of the tax due ($1,200 x 0.15 = $180). Therefore, the statement is true.

Gretchen's 2014 Tax Return, Due April 15, 2015, Was Filed