Under the current tax law, what do penalties for late filings aim to achieve?

Penalties for late filings are primarily designed to encourage timely payments. When taxpayers fail to submit their tax returns on time, the penalties serve as a financial deterrent against procrastination and compliance failures. This system aims to ensure that individuals and businesses fulfill their tax obligations within the required timeframe, ultimately supporting the overall integrity and functionality of the tax system. By imposing penalties, the tax authorities reinforce the importance of adhering to deadlines which in turn helps maintain revenue for public services.

The other choices do not accurately capture the purpose of the penalties. For instance, promoting tax transparency relates to the clarity and openness of tax reporting, which is not directly tied to the timing of filings. Facilitating IRS audits refers to the examination processes of taxpayer returns and does not align with the immediate aim of penalties. Supporting noncompliance contradicts the fundamental goal of tax penalties, which is to improve compliance and ensure that taxpayers meet their obligations. Thus, the focus remains clearly on encouraging timely payment through the implementation of these penalties.