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:

Undervalued

Describes a security or other type of investment that is selling for a price presumed to be less than its true intrinsic value.

Overvalued

A term describing a situation in which a security or an asset is trading at a price exceeding its intrinsic value.

Noncontrolling Interest

Noncontrolling interest, also known as minority interest, represents the portion of a subsidiary company’s equity that is not owned by the parent company.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group of companies when one acquires control over the other.