The failure-to-file penalty is calculated when __________. *

	The taxpayer understates their tax by the larger of $5,000 or 10% of the correct tax.
	The taxpayer shows negligence or disregard of the rules or regulations, causing an underpayment.
	The taxpayer fails to pay the tax owed by the due date.
	The taxpayer fails to file the return by the due date, including extensions, and there is a balance due.