Question

Marilyn filed her tax return on April 15. At that time, she owed $900 on a total tax liability of $10,000 and she submitted a check for $900 with her tax return. Which of the following penalties will apply to Marilyn?

A. Failure to file.
B. Underpayment of estimated tax.
C. Failure to pay.
D. None of the penalties apply to this return.

Answer 1

Answer: D. None of the penalties apply to this return.

Step-by-step explanation:

Marilyn filed her tax return on April 15 which was the deadline for filing in 2020 until it was moved to the 15th of July 2020 on account of the ongoing pandemic. She also attached a cheque for the payment of the tax liability she owed. She filed on time and paid her liability therefore none of the penalties are applicable to her.