Which of the Following Statements Regarding Late Filing Penalties Is

question 9

Multiple Choice

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

• A) 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.
• B) If a taxpayer fails to file a tax return, the late filing penalty will continue to grow until the taxpayer files the tax return.
• C) The amount of the late filing penalty is the same for both fraudulent failure to file and non-fraudulent failure to file.
• D) None of the choices are correct.

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Definitions:

Trial Balance

An accounting table that consolidates all ledger balances into equal totals in the debit and credit columns.

Journal Entry

A recording of financial transactions in the accounting records, detailing the accounts affected, amounts, and date.

Chart of Accounts

An organized list of all ledger account titles and numbers used by a company, detailing all transactions' recording places.

General Ledger

A comprehensive record of all financial transactions of a company, systematically organized by accounts.