Question

During any month in which both the failure to file penalty and the failure to pay penalty apply, the failure to file penalty is reduced by the amount of the failure to pay penalty.

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Answer 1

The failure to file penalty in relation to the failure to pay penalty in business tax matters.

Step-by-step explanation:

The subject of this question is Business because it involves penalties related to filing and paying during a specific time period.

In the context of business, the failure to file penalty refers to the penalty imposed on individuals or businesses who fail to file their tax returns on time. The failure to pay penalty, on the other hand, is the penalty imposed on those who fail to pay their taxes by the due date.

In this case, the statement is true. When both penalties apply, the failure to file penalty is reduced by the amount of the failure to pay penalty. This means that if a person owes both penalties, the total penalty amount will be less than the combined amount of the two penalties. It provides some relief to individuals who are unable to pay their taxes on time but still fulfill their filing obligations.