There is one tax infraction that incurs a penalty calculated as 15% of the amount of tax owed per month with a maximum penalty of 75%. What violation incurs this level of penalty?

Fraud-Late Filing Penalty

Explanation:

The tax infraction that incurs a penalty calculated as 15% of the amount of tax owed per month with a maximum penalty of 75% is the Fraud-Late Filing Penalty.

Fraud-Late Filing Penalty is the penalty for filing late if a taxpayer did not file on time due to fraud.

The penalty is 15% of the amount of tax that should have been reported on the tax return and an additional 15% for each additional month or part of a month that the taxpayer didn't file a return. The penalty cannot exceed 75% of the unpaid tax.

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