Question

Maliha files her tax return 35 days after the due date of the return. along with the return, she remits a check for $3,000 which is the balance of the tax she owed. disregarding the interest element, maliha's total penalties are $

Answer 1

$300

Step-by-step explanation:

The IRS establishes a 5% penalty over the taxes that you owe for every month that passes between the due date and the time you actually pay your taxes. In this case, the IRS would penalize Maliha for 2 months (the IRS doesn't use fractions) = $3,000 x 5% x 2 months = $300.

If you are more than 60 days late, then the minimum penalty is $435 or an amount equal to the total taxes owed (the lesser of both).