Registered Tax Return Preparer RTRP Practice Exam

The correct answer is B. The late filing penalty for taxpayers is typically calculated as 5% of the amount due for each month or part of the month that the return is late, with a maximum penalty cap of 25% of the total tax amount owed. This penalty encourages taxpayers to file their tax returns on time to avoid incurring additional fees.

Option A is incorrect because the late filing penalty is not a flat 10% of the tax owed that is charged weekly. Option C is inaccurate as well since the penalty is not a flat fee determined by the taxpayer's tax bracket. Option D is incorrect as there is indeed a penalty for late filing.