Mr. A is a VAT-registered professional offering accounting services to his clients in 2022.   The following data were reported from his income statement:

 

	First Quarter	Second Quarter
Professional fee (All are government sales)	P2,000,000	P2,800,000
Professional expenses from VAT registered	2,500,000	1,200,000
Depreciation expense	500,000	500,000

 

All of the fees received by Mr. A were properly withheld and the corresponding BIR Forms 2307 were issued to him.

He also opted the optional standard deduction (OSD) as a method of deduction.

 

Note:  All amounts were collected and paid.

 

Additional information:  He also received a quarterly compensation income of P180,000.

 

Amount of Net Taxable Income		Rate
Over	But Not Over
-	P250,000	0%
P250,000	P400,000	20% of the excess over P250,000
P400,000	P800,000	P30,000 + 25% of the excess over P400,000
P800,000	P2,000,000	P130,000 + 30% of the excess over P800,000
P2,000,000	P8,000,000	P490,000 + 32% of the excess over P2,000,000
P8,000,000		P2,410,000 + 35% of the excess over P8,000,000

 

Based on the information above, answer the following:

1. How much is the overpayment of BIR Form No. 2550 Q in the second quarter of 2022?
2. How much is the amount in line item 31 Part III of BIR Form No. 1701Q in the first quarter of 2022?

 

 

Transcribed Image Text:

PART III - TOTAL TAX PAYABLE Particulars 26 Tax Due (From Part V, Schedule I-Item 46 OR Schedule II-Item 54) 27 Less: Tax Credits/Payments (From Part V, Schedule III-Item 62) 28 Tax Payable/(Overpayment) (Item 26 Less Item 27) (From Part V, Item 63) 29 Add: Total Penalties (From Part V, Schedule IV-Item 67) (DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up) A) Taxpayer/Filer B) Spouse 30 Total Amount Payable/(Overpayment) (Sum of Items 28 and 29) (From Part V, Item 68) 31 Aggregate Amount Payable/(Overpayment) (Sum of Items 30A and 30B) I declare under the penalties of perjury that this retum, and all its attachments, have been made in good faith, verified by me, and to the best of my knowledge and belief, are true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof. Further, I give my consent to the processing of my information as contemplated under the **Data Privacy Act of 2012 (R.A. No. 10173) for legitimate and lawful purposes. (If Authorized Representative, attach authorization letter and indicate TIN Signature and Printed Name of Taxpayer/Authorized Representative/ Tax Agent (Indicate Title/Designation and TIN) PART III - TOTAL TAX PAYABLE Particulars 26 Tax Due (From Part V, Schedule I-Item 46 OR Schedule II-Item 54) 27 Less: Tax Credits/Payments (From Part V, Schedule III-Item 62) 28 Tax Payable/(Overpayment) (Item 26 Less Item 27) (From Part V, Item 63) 29 Add: Total Penalties (From Part V, Schedule IV-Item 67) (DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up) A) Taxpayer/Filer B) Spouse 30 Total Amount Payable/(Overpayment) (Sum of Items 28 and 29) (From Part V, Item 68) 31 Aggregate Amount Payable/(Overpayment) (Sum of Items 30A and 30B) I declare under the penalties of perjury that this retum, and all its attachments, have been made in good faith, verified by me, and to the best of my knowledge and belief, are true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof. Further, I give my consent to the processing of my information as contemplated under the **Data Privacy Act of 2012 (R.A. No. 10173) for legitimate and lawful purposes. (If Authorized Representative, attach authorization letter and indicate TIN Signature and Printed Name of Taxpayer/Authorized Representative/ Tax Agent (Indicate Title/Designation and TIN)

Answer rating: 100% (QA)

Based on the information given 1 How much is the overpayment of BIR Form No 2550 Q in the second qua... View the full answer