Both the failure$-$to$-$file and the failure$-$to$-$pay penalties apply to Jack this month. Fewer than $60$ days have passed since the due date.

How will the IRS handle these penalties?

$*$

The penalties will not be combined; the IRS will impose the lesser of the two.

The penalties will be combined with no reduction.

The penalties will not be combined; the IRS will impose the greater of the two.

The penalties will be combined; the failure$-$to$-$file penalty is reduced by the failure$-$to$-$pay penalty.