Intuit Academy Tax Practice Exam 2026 – All-in-One Guide for Exam Mastery!

Question: 1 / 400

What is the penalty for filing a tax return late?

No penalty if filed within a certain period

5% of unpaid taxes for each month late

The penalty for filing a tax return late is calculated as 5% of the unpaid taxes for each month that the return is late. This penalty accumulates over time, increasing the taxpayer's overall liability. It's important to note that this penalty applies only to the amount of tax that is owed, not on the entire income reported on the return, nor does it impose a flat fee or a specific penalty relationship to the total income.

If taxpayers file their returns late but within a specific period, they may be subject to different rules or potential relief options, but once they exceed that timeframe without reasonable cause, the 5% penalty applies. Understanding this structure helps taxpayers recognize the importance of timely filing to avoid additional costs related to late submissions.

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A flat fee regardless of amount

10% of total income reported on the return

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