Question

A demand penalty of 25% of total tax liability assessed, without regard to any payments or credits, will be charged to any taxpayer for:

Select one:

a. failing to provide requested information, or failing to make an estimated tax payment after notice and demand.

b. failing to provide requested information, or failing to file a tax return after notice and demand.

c. failing to appear before the Franchise Tax Board.

d. failing to file a tax return within nine months of the original due date.

Answer 1

As per the R&TC Section No 19133, 25% of Total Tax Liability assessed without any regard to the payments made or any Tax Credits, will be charged to the taxpayer if the Taxpayer fails to provide the information requested or if the taxpayer fails to file a return after the notice and demand is served to the taxpayer.

Therefore, option b “Failing to provide requested information, or failing to file a tax return after notice and demand” is the only correct option, go for it.

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