Question

Ford’s federal income tax return was due on April 15, but Ford did not file his return or pay his taxes until June 30. Ford’s unpaid tax balance during this period was $400. What is the total penalty that will be imposed on Ford for his failure to file and failure to pay?

a. $60.b. $66.c. $209.d. $215.

Answer 1

The penalty for late filing of return is usually 5 percent, of taxes due ,per month or part of the month , upto maximum 25 percent in total.

But if the return return is filed after 60 days of due date then the minimum penalty would be 210 dollars or taxes due whichever is lower.

So here the penalty for late return filing would be 210 dollars because it is filed after 60 days.

The penalty for late payment of taxes would be 0.5 percent ,of taxes due, per month or part of the month.

Hence it would be 400*0.5/100 * 3

6 dollars