Which of the Following Statements Regarding Late Filing Penalties Is

question 167

Multiple Choice

Which of the following statements regarding late filing penalties is true?

• A)If a taxpayer fails to file a tax return, the late filing penalty will continue to grow until the taxpayer files the tax return.
• B)The amount of the late filing penalty is the same for both fraudulent failure to file and nonfraudulent failure to file.
• C)Taxpayers who owe no tax as of the due date of their tax returns are not subject to late filing penalties even if they file late.
• D)None of the choices are correct.

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Definitions:

Price Discrimination

A pricing strategy where a company sells the same product to different customers at different prices based on market factors, demand elasticity, or customer characteristics.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output quantity changes.

Price Effect

The change in the quantity demanded of a good or service caused by a change in its price.

Deadweight Loss

The loss of economic efficiency that occurs when the equitable market outcome is not achieved, often due to taxes, subsidies, or artificially imposed prices like price ceilings or floors.