You are given a passage. You need to construct a question about the information present in the passage. Construct a question in such a way that (i) it is unambiguous, (ii) its answer is the whole paragraph. Avoid creating questions that can be answered correctly without actually understanding the paragraph.

You didn't say what the penalty was for (late filing, late payment, interest, trust fund penalties, etc.). Nor did you state who is handling your dispute (IRS Appeals, Collection Due Process, Tax Court). There's slightly different rules depending on what's going on.\n\nThe basic process for handling penalties and disputes is outlined on the IRS website.\n\nIn general, the IRS will investigate whether you are responsible for the penalty, and will send up a notice informing you that the penalty was waived or that you really do owe the penalty. Interest will accrue if you really do owe the penalty, but you haven't paid it yet.\n\nGenerally, I advise my clients to pay all penalties in full, and then dispute the penalties. This shows a good faith effort, and stops additional penalties and interest from being added to the account. If we lose the dispute, at least the client paid only the penalty and not additional interest. If we win, the client gets his money back.\n\nI hope this helps. Let us know how your dispute with the IRS turns out.\n\nBest wishes.\n\nWilliam
The IRS said i had to pay a penalty. i filed a dispute. am i legally obligated to pay unless they follow up?