Asked by Malusi Pakade on Jul 26, 2024
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Can the taxpayer avoid the failure to pay on time penalty by just filing an automatic extension to file his or her tax return?
Failure to Pay
A situation where an individual or corporation does not meet the due date for payment of taxes owed, potentially resulting in penalties.
Automatic Extension
An allowance by the IRS that gives taxpayers an additional period to file their tax returns without penalty.
Tax Return
A document filed with a tax authority that reports income, expenses, and other relevant financial information, used to calculate tax liability.
- Identify the implications of filing an automatic extension on penalties associated with late tax payments.
Verified Answer
Learning Objectives
- Identify the implications of filing an automatic extension on penalties associated with late tax payments.
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