In the case of Helen's insufficient funds on her tax payment check, the penalty she will owe is typically a percentage of the unpaid taxes. The penalty is 2% of the unpaid amount if the payment is 1-5 days late, and 5% if it's more than 5 days late. However, the minimum penalty for late payment is $25 or the unpaid tax amount, whichever is less. Therefore, the correct answer is (a) $25.
In cases where taxpayers make late payments or their checks bounce, the IRS imposes penalties to encourage timely and accurate tax payments. The penalty for insufficient funds is typically calculated based on the amount of unpaid taxes and the duration of the delay. If the payment is 1-5 days late, the penalty is 2% of the unpaid tax; if it's more than 5 days late, the penalty increases to 5%. However, the minimum penalty is $25 or the unpaid tax amount, whichever is less. In Helen's situation, without specific details on the number of days the payment is overdue, we can only determine the minimum penalty. Therefore, Helen would owe a penalty of $25. It's crucial for taxpayers to ensure sufficient funds are available when making payments to avoid penalties and potential complications with the IRS.