Which of the Following Statements Regarding Late Filing Penalties And/or

question 32

Multiple Choice

Which of the following statements regarding late filing penalties and/or late payment penalties is true?

• A) An extension of time to file the tax return protects a taxpayer from late payment penalties as long as the tax is paid by the extended due date of the return.
• B) If a taxpayer has not paid the full tax liability by the original due date of the return and the taxpayer has not filed a tax return by the due date of the return, the maximum late filing and late payment penalty will be no greater than the late filing penalty by itself.
• C) The penalty rate for late filing penalties is less than the penalty rate for late payment penalties.
• D) None of the choices are correct.