LO.5 Gordon paid the $10,000 balance of his Federal income tax three months late. Ignore daily compoundingof interest. Determine the interest rate that applies relative to this amount if the Federal short-term rate forthe relevant period is 3%, assuming that:a.Gordon is an individual.b. Gordon is a calendar year C corporation.C. The $10,000 is not a tax that is due, but is a refund payable by the IRS to Gordon (an individual).d. The $10,000 is not a tax that is due, but is a refund payable by the IRS to Gordon (a calendar year Ccorporation).

Part 1: Answer:The interest rates that apply to Gordon are:a. 8.5% b. 8%c. 6%d. 6%Part 2:…

Answered: LO.5 Gordon paid the $10,000 balance of…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 19P

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LO.6 Rita forgot to pay her Federal income tax on time. When she actually filed, she reported a balance due. Compute Rita's failure to file penalty in each of the following cases. a. Two months late, $1,000 additional tax due. b. Five months late, $3,000 additional tax due. c. Eight months late, $4,000 additional tax due. d. Three and a half months late, $3,000 additional tax due. e. Five months late due to fraud by Rita, $4,000 additional tax due. f. Ten months late due to fraud by Rita, $15,000 additional tax due.
LO.6 Wade filed his Federal income tax return on time but did not remit the balance due. Compute Wade's failure to pay penalty in each of the following cases. a. Four months late, $3,000 additional tax due. b. Ten months late, $4,000 additional tax due. c. Five years late, $5,000 additional tax due.
LO.6 Baez, a cash basis, calendar year taxpayer, filed his Federal income tax return 48 days after the due date. Baez never extended his return, and he paid the taxes that were due when he filed the return. What penalty will Baez incur, and how much will he have to pay if his additional tax is $10,000? Disregard any interest he must pay.
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.
Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) b. Paylate Corporation mistakenly wrote the check for $100. Clyde received the remaining $900 after year-end. Amount to be included in gross income
A1
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Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) a. Paylate Corporation wrote the check and put it in Clyde's office mail slot on December 30 of this year, but Clyde did not bother to stop by the office to pick it up until after year-end. Amount to be included in gross income
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! Required Information [The following information applies to the questions displayed below.] This year Lloyd, a single taxpayer, estimates that his tax liability will be $12,550. Last year, his total tax liability was $16,700. He estimates that his tax withholding from his employer will be $9,415. b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. (Do not round Intermediate calculations. Round your final answers to 2 decimal places.) Dates Actual Withholding Required Withholding Over (Under) Withheld Penalty Per Quarter April 15th June 15th September 15th January 15th Total
CreatGordon paid the $10,000 balance of his Federal income tax three months late. Determine the interest rate that applies relative to this amount for the first quarter of 2022. (Ignore daily compounding of interest.) a) Gordon is an individual. b) Gordon is a calendar year C corporation. c) The $10,000 is not a tax that is due, but is a refund payable by the IRS to Gordon (an individual). d) The $10,000 is not a tax that is due, but is a refund payable by the IRS to Gordon (a calendar year C corporation).e a budget on a spreadsheet supposing you earn $45,000 a year

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