Olivia, a calendar year taxpayer, does not file her 2015 Form 1040 until December 12, 2016. At this point, she pays the $40,000 balance due on her 2015 tax liability of $70,000. Olivia did not apply for nor obtain any extension of time for filing the 2015 return. When questioned by the IRS on her delinquency, Olivia asserts: "If I was too busy to file my regular tax return, I was too busy to request an extension."

a. Is Olivia liable for the failure to file penalty or the failure to pay penalty?

Olivia is liable for A. only the failure to file penalty B. only the failure to pay penalty C. both fail to pay and file penalties

D. neither fail to pay or file penalty.

b. If Olivia is liable for the failure to file penalty and/or the failure to pay penalty, the total penalty amount would be $