Identify Which of the Following Statements Is True

question 9

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) 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.
• 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:

Agency Relationship Law

Legal principles that govern the relationship between an agent, who acts on behalf of another person (the principal), and the principal, detailing duties, rights, and liabilities.

Actual Notice

Directly being informed about something or being aware of a fact or situation.

Constructive Notice

A legal concept that assumes a person is aware of facts, notices, or documents even if they are not physically present, often used in property law to signify recorded documents.

Agency Coupled With Interest

An agency coupled with an interest is a situation in which an agent has been given rights or property interest in the subject matter of the agency, making the agency irrevocable for a specified period.