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(TCO 8) Which of the following statements is false?
A taxpayer can be charged a penalty for the late payment of taxes even if an extension to file was granted.
The interest charged on the late payment of taxes is not deductible on the federal tax return.
The penalty for late filing and late payment of taxes is 10% of the balance of tax due with the return for each month it is delinquent. (General Feedback:
Chapter 18, pages 574–577)
A taxpayer who can establish a reasonable cause for the late filing of his or her tax return will not be charged a late filing penalty.
Comments:
Question 2. Question : (TCO 8) Thomas did not extend or file his 2013 federal tax return until December 3, 2014. His total tax liability was $5,000; the return showed a net refund due of $75. He filed late because he was in Vegas with his old fraternity buddies. What amount of late-filing penalty will he owe for the 2013 tax year?