Isabella files her income tax return 90 days after the due date of the return without obtaining an extension from the irs. along with the return, she remits a check for $2,000, which is the balance of the tax she owes. note: assume 30 days in a month. disregarding the interest element, enter isabella's failure to file penalty and and failure to pay penalty.

 Penalty for Failure to Pay  = $30

Penalty for Failure to File = $270

Explanation:

given data

income tax return =  90 days

return with remits a check = $2,000

a month = 30 days

solution

we know as per IRS guidelines

penalty for failure to pay is usually half of 1% of the unpaid taxes for each month and penalty for filing late is usually 5% of the unpaid taxes for each month

so penalty for Failure to pay is

Penalty for Failure to Pay = Tax amount  × Penalty rate × No of month late    1

 Penalty for Failure to Pay =  $2,000 × (1/2 of 1%) × 3 months

 Penalty for Failure to Pay = $2,000 × 0.005 × 3 = $30

and

penalty for Failure to file is as

Penalty for Failure to File = ( Tax amount × Penalty rate × No of month late) - Penalty for failure to pay    2

Penalty for Failure to File = ( $2,000 × 5% of 3 months ) - $30

Penalty for Failure to File = ( $2,000 × 0.05 × 3 )  - $30

Penalty for Failure to File = $270

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported