QUESTION 63 The penalty for failing to file a tax return on time (late filing penalty) is equal to: .5% of the amount due for each full month that the return is late, up to a maximum 25% penalty. .5% of the amount due for each month (or fraction of a month) that the return is late, up to a maximum 25% penalty. 5% of the amount due for each full month that the return is late, up to a maximum 25% penalty. 5% of the amount due for each month (or fraction of a month) that the return is late, up to a maximum 25% penalty. None of the above.