Which of the following payments is a tax?
I.Artis paid the IRS a penalty of $475 (above his $11,184 income tax balance due) because he had significantly underpaid his estimated income tax.
II.Lindsey paid $135 to the State of Indiana to renew her CPA license.
III.Carrie paid a $3.50 toll to cross the Mississippi River.
IV.Darnell paid $950 to the County Treasurer's Office for an assessment on his business equipment.

Question

Quizplus · Accepted Answer

A tax is a mandatory payment to the government, usually based on income, property, or goods and services. Only statement IV is a tax because it is an assessment on business equipment, which is a form of property. Statements I, II, and III are not taxes because they are penalties, licensing fees, and tolls, respectively.

Which of the Following Payments Is a Tax