For how many months is the surcharge liability period extended if a business submits a second late return?

The surcharge liability period is extended by 12 months if a business submits a second late return. This extension applies when a business has already incurred a surcharge due to a first late return, and then subsequently fails to file a second return on time. The reasoning behind this is to provide a stronger corrective measure for businesses that do not comply with their filing obligations, ensuring they are encouraged to file returns punctually in order to avoid more extensive penalties and surcharges. This policy helps maintain compliance and promotes timely tax declarations.

In contrast, the other choices reflect incorrect durations that do not align with the regulations regarding surcharge liability for late returns in this context. Understanding the nuances of these rules can greatly assist businesses in managing their compliance effectively.