Question

Iris did not file her 2019 tax return until May 23, 2020. She is due a $530 refund. Iris's failure-to-file penalty is:

Answer 1

Answer: $0

Step-by-step explanation:

The tax return failure-to-file penalty is only levied when a person is supposed to pay taxes with the penalty being levied on the tax amount due.

If however, it is a tax return that is due, there is no late filling penalty because a penalty will not be charged on a refund. This is also the official position of the IRS. Iris therefore will suffer no failure-to-file penalty.