Compute the failure to pay and failure to file penalties for John, who filed his 2015 income tax return on December 20, 2016, paying the $10,000 amount due at that time. On April 1, 2016, John received a six-month extension of time in which to file his return. He has no reasonable cause for failing to file his return by October 15 or for failing to pay the tax that was due on April 15, 2016. John's failure to comply with the tax laws was not fraudulent.
Answer to relevant QuestionsOlivia, a calendar year taxpayer, does not file her 2015 Form 1040 until December 12, 2016. At this point, she pays the $40,000 balance due on her 2015 tax liability of $70,000. Olivia did not apply for and obtain any ...Recently, a politician was interviewed about fiscal policy, and she mentioned reducing the "tax gap." Explain what this term means. What are some of the pertinent political and economic issues relative to the tax gap? The Leake Company, owned equally by Jacquie (chair of the board of directors) and Jeff (company president), is in very difficult financial straits. Last month, Jeff used the $300,000 withheld from employee paychecks for ...Compute the preparer penalty the IRS could assess on Gerry in each of the following independent cases. a. On March 21, the copy machine was not working, so Gerry gave original returns to her 20 clients that day without ...Your firm is preparing the Form 1040 of Norah McGinty, a resident, like you, of Oklahoma. You have contracted for the last three filing seasons with a firm in India, Tax Express Bangalore, to prepare initial drafts of tax ...
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