Blanche Creek has engaged your firm because she has been charged with failure to file her 2013 federal Form 1040. Blanche maintains that the “reasonable cause” exception should apply. During the entire tax-filing season in 2014, she was under a great deal of stress at work and in her personal life. As a result, Blanche developed a sleep disorder, which was treated through a combination of pills and counseling. Your firm ultimately prepared the 2013 tax return for Blanche, but it was filed far beyond the due date. Blanche is willing to pay the delinquent tax and related interest. However, she feels that the failure-to-pay penalty is unfair, as she was ill. Consequently, she could not be expected to keep to the usual deadlines for filing. Write a letter to Blanche concerning these matters.
Answer to relevant QuestionsMay Circular 230 practitioners advertise on television? On the Internet? If so, what standards are applied to the advertisements? A CPA must meet certain qualitative standards under Rule 201 (General Standards). Discuss the four general standards of this rule. The Church of Freedom encourages its members to file “tax protestor” returns with the IRS, objecting to both the government’s failure to use a gold standard in payment of tax liabilities and its sizable expenditures ...Joan, a traveling sales representative, kept no formal books and records to summarize her gross receipts for the year, but she retained copies of all customer invoices and reported her gross income for the year from these ...Define and illustrate the following terms or concepts: a. Fraud b. Negligence c. Reasonable cause d. Lack of reasonable cause e. Civil penalty conviction f. Criminal penalty conviction
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