Based on her Year 1 return, the IRS properly assessed and sent Fernanda a Demand for Payment
Fantastic news! We've Found the answer you've been seeking!
Question:
Based on her Year 1 return, the IRS properly assessed and sent Fernanda a Demand for Payment for $7,000 of unpaid tax liability, $3,000 in interest, and $2,000 in penalties. She was recently fired from her job and thus does not have the funds available to pay the entire liability within the 10-day period reflected in the notice. She had always filed her returns on time.
- 1. What type of installment payment options are available to Fernanda?
- 2. Over how many years might the IRS allow her to spread the payments?
- 3. How might your answers to Questions 1 and 2 change if the outstanding tax liability were $40,000 plus $6,000 in interest and $2,000 in penalties?
- 4. How might your answers to Questions 1 and 2 change if the outstanding tax liability were $40,000 plus $9,000 in interest and $3,000 in penalties?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: