LO.6 Blair underpaid her taxes by $250,000. A portion of the underpayment was shown to be attributable toBlair's negligence ($100,000). A court found that the rest of the deficiency constituted civil fraud ($150,000).a. Compute the total fraud and negligence penalties incurred.b. Construct a Microsoft Excel formula that computes the penalties incurred in part (a).C. Blair pays the penalties four years after committing the improper acts. Her after-tax rate of return onavailable cash is 7%. Construct a Microsoft Excel formula that generates the present value of Blair'spenalty obligations.

Calculate the total amount of penalties that were incurred due to fraud and negligence.Negligence…

Answered: LO.6 Blair underpaid her taxes by…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 25P

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Similar questions

1
Kyle provides landscaping services to a number of clients. In filing his current-year income tax return, Kyle excluded revenue received from cash customers. If Kyle is found guilty of fraud, he may be subject to all of the following except: a. Other penalties as provided by law. b. A fine for not more than $250,000. c. Being held responsible for the costs of prosecution. d. Imprisonment for not more than 2 years
F53.
For part C I tried 10,500 and 3,500 which both were wrong. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The revenue agent who audited Ms. Hsui's Form 1040 discovered a $15,500 deduction that wasn't allowed by the tax law. The improper deduction reduced Ms. Hsui's tax by $5,053. The total tax deficiency for the year under audit was $6,510. Required: a. Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. b. Compute the maximum penalty if the agent concludes that the improper deduction represented Ms. Hsui's deliberate attempt to cheat the government by underpaying tax. Complete this question by entering your answers in the tabs below. Required A Required B Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. Note: Round your answer to the nearest whole dollar amount. Negligence penalty s 291 Ⓡ Required A Required B >
Interest and Penalties (LO 12.3) For each of the following situations, select the nature of the penalty and amount of the penalty that could be imposed. a. Larry is a tax protester and files his tax return in the name of "Mickey Mouse." b. Anne writes a check for $900 in payment of her taxes that she knows will not clear the bank due to insufficient funds in her C. account. Gerald understated his tax liability by $10,000. The total amount of tax that should have been shown on his return was $70,000. Description of the Penalty Filing a frivolous tax return Bad check ✓ Accuracy-related penalty, substantial understatement Penalty Amount
The revenue agent who audited Ms. Hsui's Form 1040 discovered a $15,250 deduction that wasn't allowed by the tax law. The improper deduction reduced Ms. Hsui's tax by $5,033. The total tax deficiency for the year under audit was $6,490. Required: a. Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. b. Compute the maximum penalty if the agent concludes that the improper deduction represented Ms. Hsui's deliberate attempt to cheat the government by underpaying tax. Complete this question by entering your answers in the tabs below. Required A Required B Compute the maximum penalty if the agent concludes that the improper deduction was due to Ms. Hsui's negligence in preparing the tax return. Note: Round your answer to the nearest whole dollar amount.
For each of the following situations, indicate the nature and amount of the penalty that could be imposed. Description of the Penalty AND Penalty Amount $ a. Larry is a tax protester and files his tax return in the name of “Mickey Mouse.” b. Anne writes a check for $900 in payment of her taxes that she knows will not clear the bank due to insufficient funds in her account. c. Gerald understated his tax liability by $10,000. The total amount of tax that should have been shown on his return was $70,000.
Subject: acounting
H2.
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.
b. Joan filed her individual income tax return 3 months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $11,510, which was the balance of the taxes she owed with her return. Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent.$

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