Is Elaine liable for a delinquency penalty under section 6651 and, if so, in what amount?...

  

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Is Elaine liable for a delinquency penalty under section 6651 and, if so, in what amount? Upon audit, the IRS determined, much to Elaine's satisfaction, that her total tax liability for Year 1 was only $23,000. What, if anything, is the amount of the delinquency penalty she will owe? Elaine mailed in her Year 1 income tax return on June 9, Year 2, showing a total tax liability of $25,000. It was received by the IRS on June 14. Elaine's employer had withheld from her wages during the year a total of $15,000 in tax. Elaine paid the entire balance due ($10,000) at the time she filed her return. A. Assume that the reason Elaine mailed her return on June 9 is because, on April 14, she gave the return to her friend Newman, who works at the Post Office, and asked him to mail it for her. He left the envelope in his jacket and did not remember or discover it until June 9, when he promptly mailed it (with an attached note explaining that the delay was entirely his fault). Is Elaine liable for a delinquency penalty under section 6651 and, if so, in what amount? B. Assume instead that Elaine had obtained an automatic extension of time to file her return by timely filing Form 4868. Is Elaine liable for a delinquency penalty under section 6651 and, if so, in what amount? Upon audit, the IRS determined, much to Elaine's satisfaction, that her total tax liability for Year 1 was only $23,000. What, if anything, is the amount of the delinquency penalty she will owe? Elaine mailed in her Year 1 income tax return on June 9, Year 2, showing a total tax liability of $25,000. It was received by the IRS on June 14. Elaine's employer had withheld from her wages during the year a total of $15,000 in tax. Elaine paid the entire balance due ($10,000) at the time she filed her return. A. Assume that the reason Elaine mailed her return on June 9 is because, on April 14, she gave the return to her friend Newman, who works at the Post Office, and asked him to mail it for her. He left the envelope in his jacket and did not remember or discover it until June 9, when he promptly mailed it (with an attached note explaining that the delay was entirely his fault). Is Elaine liable for a delinquency penalty under section 6651 and, if so, in what amount? B. Assume instead that Elaine had obtained an automatic extension of time to file her return by timely filing Form 4868.

Answer rating: 100% (QA)

Delinquency Penalty Analysis for Elaine A Newmans Delayed Mailing Delinquency Penalty Yes Elaine is ... View the full answer