Mr. Leon filed his 2016 Form 1040 on March 29, 2017. In 2019, the IRS issued a

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Mr. Leon filed his 2016 Form 1040 on March 29, 2017. In 2019, the IRS issued a notice of deficiency to Mr. Leon, in which it assessed $7,700 of additional 2016 income tax. Compute the total amount that Mr. Leon owes to the federal government assuming:

a. The annual interest rate (underpayment rate) throughout the 24 month period between the required filing date and the assessment date was 4 percent. Ignore the effect of interest compounding.

b. The IRS imposed a negligence penalty on the entire deficiency.

c. The IRS imposed a civil fraud penalty on the entire deficiency.

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Related Book For  answer-question

Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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