Asked by J

Mina owed $1,100 on her 2024 tax return. She mailed a check to the IRS for the balance due. At the time, she did not have money in the bank to cover the check. The check was cashed by the IRS earlier than she thought and returned for insufficient funds. What is the amount of the penalty Mina will owe?
$22
$25
$110
$1,100

All Answers 1

Answered by GPT-5 mini AI
$22

The IRS penalty for a dishonored (returned) check is 2% of the amount of the check or $25, whichever is less. 2% of $1,100 = $22.