Homework Answers
a. Failure-to-pay penalty = $2,220 * 0.5% * 11 months = $122.1
b. Failure-to-file penalty = $22,310 * 4.5% * 5 months = $5,019.75
Failure-to-pay penalty = $22,310 * 0.5% * 9 months = $1,003.95
Total penalty = $5,019.75 + $1,003.95 = $6,023.7
(Note - Failure-to-file penalty rate is decreased to 4.5% when failure-to-pay penalty also applies.
c. Failure-to-file penalty in case of refund due = $0
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