Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was

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Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud.
a. Determine Rivera's civil fraud penalty.
b. Rivera pays the penalty five years after committing the fraudulent act. Her after tax rate of return on available cash is 9%. What is the present value of Rivera's penalty?

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Feb 27, 2017 03:42 AM

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Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was

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A 75 civil penalty is imposed on any underpayment resulting from fraud by the ...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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