When a Taxpayer Fails to Pay the Tax Owed at the Time

question 4

Multiple Choice

When a taxpayer fails to pay the tax owed at the time it is due, a penalty is imposed; the penalty is normally one-half of one percent of the net tax due for each month the tax is not paid.In what situation may the penalty be increased to one percent per month?

• A)If the taxpayer moves out of the country
• B)If the IRS notifies the taxpayer of its intent to levy on the taxpayer's assets
• C)If the taxpayer is found guilty on a drug charge
• D)If the IRS perceives that the taxpayer's nonpayment is intentional fraud
• E)Any one of the above situations

---

Definitions:

Financial Plan

A financial plan is a comprehensive strategy designed to help individuals or organizations achieve their financial goals, including saving, investment, budgeting, insurance, and tax strategies.

Sales Growth

The increase in sales over a specific period, indicating the performance and expansion potential of a business.

Planner's Assumptions

Fundamental assumptions made by planners about the future conditions and variables that will affect project outcomes or business conditions.

Implied Hypothesis

An unstated hypothesis thought to influence a situation or experiment's outcome indirectly.