If a taxpayer's check to the IRS for payment of taxes does not clear, what is the penalty for the dishonored check?

When a taxpayer's check to the IRS is returned for insufficient funds, there is a penalty associated with this dishonored check. The correct response indicates that the penalty for a check that does not clear is $60.

This penalty is specifically aimed at discouraging taxpayers from submitting bad checks as a form of payment for their tax obligations. It acts as a financial disincentive, ensuring that taxpayers remain responsible in managing their funds and obligations toward the IRS. It's important to note that the IRS implements standardized penalties to maintain consistency in how such situations are handled, and the $60 penalty reflects current enforcement practices as of October 2023.

The other options represent amounts that are not applicable as penalties for dishonored checks; the $60 penalty is set to minimize administrative complications and reinforce the importance of timely and valid payments to the IRS.