SWFT Comprehensive Vol 2020
43rd Edition
ISBN: 9780357391723
Author: Maloney
Publisher: Cengage
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For tax year 2019, the IRS assesses a deficiency against David for $500,000.
a. Disregarding the interest component, enter David's penalty if the deficiency is attributable to negligence: $fill in the blank 00862dfde01c05d_1.
b. Disregarding the interest component, enter David's penalty if the deficiency is attributable to civil fraud: $fill in the blank c83f71023f93fbc_1.
The IRS determined that John underpaid his 2016 tax liability by $6,000 due to negligence. In 2018, John pays $1,000 of interest related to the underpayment and the full amount of any penalties assessed by the IRS.
a.
Calculate the amount of the accuracy-related penalty that could be assessed by the IRS in this situation.
b.
What part of the deficiency, income taxes, interest, and penalty, is deductible by John on his current tax return? Explain.
Neville's 2020 return was audited by the IRS and was assessed $18,000 in tax. Assuming his actions were negligent, not fraudulent, what is his accuracy penalty?
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- Ms. Schmidt didn't request an extension of time to file a 2021 income tax return and didn't mail the completed return to the IRS until August 8, 2022. Ms. Schmidt enclosed a check for $2,380, the correct balance of tax due with the return. Required: a. Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late-payment penalty. b. Compute the late-filing and late-payment penalty if the return was not mailed until November 21. Complete this question by entering your answers in the tabs below. Required A Required B Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late- payment penalty. Late-filing and late-payment penalty < Required A Required Barrow_forwardMs. Schmidt didn't request an extension of time to file a 2021 income tax return and didn't mail the completed return to the IRS until August 8, 2022. Ms. Schmidt enclosed a check for $3,490, the correct balance of tax due with the return. Required: a. Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late-payment penalty. b. Compute the late-filing and late-payment penalty if the return was not mailed until November 21. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the late-filing and late-payment penalty if the return was not mailed until November 21. Note: Round your intermediate and final calculations to the nearest whole dollar amount. Late-filing and late-payment penalty $ 698 x < Required A Required Barrow_forwardJohn filed his 2021 income tax return on December 20, 2022, paying the $10,000 amount due at that time. On April 1, 2022, John had received a six-month extension of time in which to file his return. He has no reasonable cause for failing to file his return by October 15 or for failing to pay the tax that was due on April 15. John's failure to comply with the tax laws was not fraudulent. Compute the failure to pay and failure to file penalties for John. Failure to pay penalty: $ X Failure to file penalty: $ Xarrow_forward
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