Question
which of the following statements regarding income tax penalties are true? 1. a penalty of 5% of the amount of tax not paid may apply
which of the following statements regarding income tax penalties are true? 1. a penalty of 5% of the amount of tax not paid may apply for failure to file an income tax return by the due date (including extensions) 2. a penalty of .5% of the unpaid taxes may apply for failure to pay the tax for each month after the due date that the tax is not paid. 3. a penalty of 20% of the underpayment of tax due may apply where the underpayment is due to negligence. 4. a penalty may apply for the substantial understatement of income tax on an income tax return.
a. 2 and 3 only
b. 1 and 2 only
c. 1 and 3 only
d. 1, 2, 3, and 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started