Question

Ed has not filed an Oregon tax return for the last 3 years. He owed $180 in state tax in 2010 and he owed $120 in state tax in 2011. In 2012, he was due a $350 refund. His penalty is:

a. $0.
b. $180.
c. $300.
d. $600.

Answer 1

The penalty for not filing Oregon tax returns for the last 3 years is $0.

Step-by-step explanation:

The penalty for Ed not filing an Oregon tax return for the last 3 years can be calculated as follows:

Year 2010: $180 owed

Year 2011: $120 owed

Year 2012: $350 refund

To calculate the penalty, we need to determine the total amount Ed owes for the three years. Subtracting the refund from the total owed, we have:

Total owed = ($180 + $120) - $350 = $-50

Since the total owed is negative, it means Ed actually overpaid the state tax for the three years. Therefore, the penalty is $0.