Identify Which of the Following Statements Is True

question 10

Multiple Choice

Identify which of the following statements is true.

• A)The failure-to-pay penalty is waived if the additional tax due with the filing of the extended return does not exceed 15% of the tax owed for the year.
• B)If both the failure-to-file and the failure-to-pay penalties are owed, the taxpayer will incur a maximum addition to tax of 5.5% per month.
• C)Individuals having substantial income from sources not subject to regular withholding generally should make quarterly estimated tax payments to the IRS.
• D)All of the above are false.

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Definitions:

Article III

Pertains to the section of the U.S. Constitution that establishes the Judicial Branch of the government, outlining the powers and structure of the federal courts.

Federal Courts

Courts established by the federal government of a country that have jurisdiction over constitutional, statutory, and other legal matters.

Social Regulations

Rules imposed by government to regulate the impact of business activities on public health, safety, the environment, and social welfare.

Rational Basis Review

A legal standard used by courts to evaluate the constitutionality of a statute or ordinance, where the government only needs to show that the law is rationally related to a legitimate government interest.