On June 25, 2018, Peter mailed his 2017 Form 1040, U.S. Individual Income Tax Return, to...
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On June 25, 2018, Peter mailed his 2017 Form 1040, U.S. Individual Income Tax Return, to the correct IRS campus processing center. Peter's 2017 Form 1040 was due on April 15, 2018. On his 2017 Form 1040, Peter reported an income tax liability of $180,000. During 2017, Peter made estimated tax payments of $80,000. On June 26, 2018, the IRS received Peter's 2017 Form 1040. Peter subsequently paid the remaining $100,000 he owed by a check that the IRS received on August 18, 2018. On September 10, 2018, the IRS sent Peter a notice about his 2017 taxable year. The notice stated that as of August 18, 2018, Peter had no underlying tax liability but owed a penalty under I.R.C. 6651(a)(1) for his failure timely file his 2017 Form 1040 and a penalty under I.R.C. 6651(a)(2) for his failure to timely pay the amount set forth on his 2017 Form 1040. Assume that Peter was liable for both penalties, and that the Form 1040 he filed was entirely accurate. Ignore any potential interest liability. Question: what was Peter's liability under I.R.C 6651 (a)(1) for his failure to timely file his 2017 Form 1040? On June 25, 2018, Peter mailed his 2017 Form 1040, U.S. Individual Income Tax Return, to the correct IRS campus processing center. Peter's 2017 Form 1040 was due on April 15, 2018. On his 2017 Form 1040, Peter reported an income tax liability of $180,000. During 2017, Peter made estimated tax payments of $80,000. On June 26, 2018, the IRS received Peter's 2017 Form 1040. Peter subsequently paid the remaining $100,000 he owed by a check that the IRS received on August 18, 2018. On September 10, 2018, the IRS sent Peter a notice about his 2017 taxable year. The notice stated that as of August 18, 2018, Peter had no underlying tax liability but owed a penalty under I.R.C. 6651(a)(1) for his failure timely file his 2017 Form 1040 and a penalty under I.R.C. 6651(a)(2) for his failure to timely pay the amount set forth on his 2017 Form 1040. Assume that Peter was liable for both penalties, and that the Form 1040 he filed was entirely accurate. Ignore any potential interest liability. Question: what was Peter's liability under I.R.C 6651 (a)(1) for his failure to timely file his 2017 Form 1040?
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Peters Liability under IRC 6651a1 for Late Filing IRC 6651a1 imposes a penalty of 5 per mont... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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