The Late Payment Penalty Is Based on the Amount of Tax

question 103

True/False

The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited.

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Definitions:

Overdue

Overdue refers to a situation where a payment or obligation has not been met by its specified due date.

Cashier's Check

A check issued by a bank, drawn from the bank’s own funds and signed by a cashier or teller, guaranteed by the bank.

Payable

The amounts of money that a company owes to vendors or creditors for goods or services received that have not yet been paid.

Bearer

The individual in possession of an instrument, such as a check or promissory note, that is not made out to a specific payee.