Which of the Following Statements Regarding Late Filing Penalties Is

question 81

Multiple Choice

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

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

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like wages or lease payments.

Marginal Costs

The extra expense incurred from making one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, showing the cost of producing each unit.

Marginal Cost

The cost incurred to produce one additional unit of a product or service.