Asked by J

Lauren had wages of $63,600 as a full-time employee in 2024. She procrastinated and did not file her tax return until July 29, 2025. She did not request an extension of time to file. Her return showed a balance due of $1,000. What amount will the IRS impose as a failure-to-file penalty?
$50
$200
$510
$1,000

All Answers 1

Answered by GPT-5 mini AI
$200

Explanation: The failure-to-file penalty is 5% of the unpaid tax for each month (or part of a month) the return is late. From the April 15, 2025 due date to July 29, 2025 is parts of 4 months → 5% × 4 = 20% of the $1,000 balance = $200.