Understanding Tax Filing and Payment

What is the purpose of submitting form 4868 during tax season?

• To apply for a tax refund

• To extend the payment deadline

• To extend the filing deadline

• To reduce the amount owed

What is the maximum penalty percentage for late filing of taxes?

• 15%

• 25%

• 30%

• 10%

What happens if you underestimate your quarterly estimated tax payments?

• You get an automatic extension

• You are exempt from penalties

• You face an underpayment penalty

• You receive a refund

If you are due a refund but file late, what is the consequence?

• You lose the refund after 3 years

• You pay a late payment penalty

• You pay a late filing penalty

• You receive interest on the refund

What should you do if you can't pay your full tax bill immediately?

• Wait for a penalty notice

• Pay what you can and set up a payment plan

• File for bankruptcy

• Ignore the bill