If a Taxpayer Fails to File Return Due to Willful

question 45

Multiple Choice

If a taxpayer fails to file return due to willful neglect, the minimum penalty is:

• A) 25 percent or 5 months cumulative penalty
• B) lesser of $ 125 or the full amount of taxes that are required to be shown on the return
• C) 15 percent monthly penalty
• D) lesser of $135 or the full amount of taxes that are required to be shown on the return

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Definitions:

Debt Financing

The use of borrowed funds to finance a business.

Insolvency

The financial state in which an individual or company cannot meet their due debt obligations due to a lack of sufficient assets or funds.

Leverage

The use of borrowed capital or financial derivatives to increase the potential return of an investment.

IPO

An Initial Public Offering (IPO) is the process by which a private company offers shares to the public in a new stock issuance, allowing it to raise capital from public investors.