When a deduction is disallowed, they have until ______ to pay.

• A. June 1
• B. June 15
• C. July 1
• D. May 31

Answer: (A)

When a deduction is disallowed, the result is a tax deficiency that must be paid. The key idea is that there’s a fixed deadline set by the tax authority for paying that additional amount after the disallowance is made. In this material, the deadline is June 1. This mid-year date gives a clear, consistent point for collections after adjustments are issued, and it helps ensure the extra tax is paid in a timely fashion. If the payment isn’t made by that date, penalties and interest can apply, and there may be options to appeal or set up a payment plan.