Final answer:
The late filing penalty for not submitting an income tax return by the deadline is 5% of the owed tax per month, maxing out at a certain point. This penalty mimics the progressive nature of the U.S. tax system, with the marginal tax rates for a single taxpayer ranging from 10% to 35%, depending on their income level.
Step-by-step explanation:
The question refers to the late filing penalty imposed by the Internal Revenue Service (IRS) in the United States. If you do not file your income tax return by the yearly deadline, which is usually April 15th, you may owe a late filing penalty.
This penalty is equal to 5% of the amount of tax owed for each month that the tax return is late. The late filing penalty has a maximum cap.
If you have had sufficient tax taken out of your paycheck throughout the year, you might receive a tax refund, which is the return of any excess taxes you paid over what you actually owe.
However, if you've underpaid, not only will you owe the balance, but also potentially an additional penalty for filing late.
The federal income tax system in the U.S. is progressive, meaning higher income earners pay a higher percentage in taxes, with single taxpayer marginal tax rates ranging from 10% to 35% based on income levels. These brackets can result in different average and marginal tax rates for individuals.