Taxpayers are assessed the penalty for negligence or intentional disregard when they show negligence or disregard of the rules or regulations by __________.

Failing to file the return by the due date, and there is a balance due.

Failing to pay the tax owed by the due date.

Causing an underpayment of their tax.

Understating their tax by the larger of $5,000 or 10% of the correct tax.