Question

Julie filed a valid extension for her 2017 tax return, giving her until October 15, 2018, to file her return. She filed her return on November 1 and paid $2,000 of tax due. For what period of time will Julie be subject to interest? For what period of time will Julie be subject to the failure-to-file and failure-to-pay penalties?

Answer 1

Answer and Explanation:

Julie will have to pay for each month she is unable to file her return. She will be subjected to failure to file if she fails to file her tax return on the last date of the due date or extension date given to her. After that she will have to pay penalty. The penalty would increase with further delay.