16. Is this statement true about underpayment penalties. A. The taxpayer will never receive an underpayment penalty as long as their taxes are paid before their original due date. B. If this is for the first time you have received this penalty you may request a penalty abatement with the IRS. C. Penalties are assessed when the tax is underpaid by more than 50%.

16. Is this statement true about underpayment penalties. A. The taxpayer will never receive an underpayment penalty as long as their taxes are paid before their original due date. B. If this is for the first time you have received this penalty you may request a penalty abatement with the IRS. C. Penalties are assessed when the tax is underpaid by more than 50%.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 3A

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Similar questions

s this statement true about underpayment penalties? The taxpayer will never received an underpayment penalty so long as their taxes are paid before the original due date
Which of the following statements about credits is false? A. Credits reduce a taxpayer's liability dollar for dollar. B. Not all credits are refundable. C. The CARES Act stimulus payments were advance credits for 2020. D.Nonrefundable credits are limited to the tax balance due.
1. A tax payer receives an assessment notice from the BIR informing him that his total deficiency tax is 25,000 that is due last April 15. Upon receiving the notice the tax payers immediately filed and pay his tax on August 15. How much would be the total amount due? 2. Income tax return for the calendar year 2019 was due for filing on April 15, 2021 but the tax payer voluntarily filed his return without assessment notice from the BIR on June 30, 2021. The tax due per return amounts to 280,000. How much would be the total amount due? 3. The taxpayer's 2020 income tax return is to be filed through authorized agent bank under the jurisdiction of RDO East Manila. Without prior authorization from the BIR, the taxpayer filed his tax return and paid the tax through the authorized agent bank under the jurisdiction of RDO Laoag City? The tax due per return is 100,000. How much would be the total amount due? 4. In connection with problem number 3, the taxpayer also filed his return 3 months…
20.A taxpayer certificate of deposit that was set to mature the end of next year is needed for a down payment on their residence the taxpayer decided to cash out the certificate of deposit now is the following scenario accurate. A. The taxpayer must report their total amount of interest and can deduct the penalty on their tax return. B. The total interest income of $1,600 and a taxpayer early withdrawal penalty is $300 the taxpayer net the two amount together and report $1300 interest on a schedule B. C. Both the total interest amount in the early withdrawal penalties are reported to the taxpayer on form 1099-INT.
3. Choosing the standard deduction or itemized deductions The IRS allows you to reduce your adjusted gross income by either the amount of your standard deduction based on your filing status, or by the sum of your Itemized deductions. The following statement refers to deductions from adjusted gross income. The government estimates a likely amount of tax-deductible expenses for each filing status to determine the The U.S. Individual Income Tax Return (Form 1040) Schedule A lists six areas of itemized deductions. Which of the following can be included in Itemized deductions? Check all that apply. Interest you paid O Casualty and theft losses not paid by insurance ORetirement plan contributions DUnemployment compensation O Medical and dental expenses not paid by insurance in excess of 10% of adjusted gross income
These statements are presented to you for evaluation:Statement I - A deficient but not delinquent taxpayer is not required to pay 25% penalty but has to pay 12% interest of the deficiency tax.Statement II - A delinquent taxpayer is required to pay 50% penalty and 20% interest on his tax delinquency.In your evaluation of the foregoing statements: Group of answer choices Only Statement II is true. Both statements are false. Both statements are true. Only Statement I is true.
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3. Mr. So filed his 2022 income tax return on June 30, 2023. The BIR discovered a deficiency income tax on August 15, 2024. When should the deficiency tax assessment be served? a. On or before August 15, 2027 b. On April 15, 202 c. On or before June 30, 2026 d. On or before April 15, 2026
For any given year, your income tax payable can never exceed income tax expense. a) True b) False
A taxpayer is itemizing their return and they're trying to calculate the deductible amount of state income taxes paid. They have $4,000 from their Form(s) W-2 and they paid an outstanding balance in the current year for the prior year's balance of $2,500. What is the total amount of Line 5 income taxes that they can itemize? (Do not consider SALT limitations for this question) 2500 4000 6500
Why do most companies prefer to use an NOL Carryback instead of an NOL Carryforward when both options are allowed by tax law? (NI&60) O It allows them to reduce their income tax expense in the current year. O It allows them to reduce their future income tax expense. O It allows them to increase their income tax refund in the current year. It allows them to increase their future income tax refunds.
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