If a Taxpayer Fails to File Their Taxes, What Is

question 8

Multiple Choice

If a taxpayer fails to file their taxes, what is the penalty?

• A) Fifteen percent per month unless the failure to file is fraudulent in which case the penalty is twenty percent per month.
• B) Five percent per month unless the failure to file is fraudulent in which case the penalty is fifteen percent per month.
• C) .05% per month unless it is proven to be fraudulent, in which case the penalty is .50% per month.
• D) $25 flat fee penalty per month.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Price

The amount of money required to purchase a good, service, or asset.

Coupon

Represents the interest payment that a bond issuer owes to the bondholders, typically expressed as an annual percentage of the bond's face value.

Bond B

Refers to a specific class or series of bond, which may be characterized by its rank, terms, issuing entity, or other defining features.