LO.6 Olivia, a calendar year taxpayer, does not file her 2022 Form 1040 until December 12, 2023. At this point,she pays the $40,000 balance due on her 2022 tax liability of $70,000. Olivia did not apply for and obtain anyextension of time for filing the 2022 return. When questioned by the IRS on her delinquency, Olivia asserts:"If I was too busy to file my regular tax return, I was too busy to request an extension."a. Is Olivia liable for any penalties for failure to file and for failure to pay?b. If so, compute the penalty amounts.

a. Is Olivia liable for any penalties for failure to file and for failure to pay?Yes, Olivia is…

Answered: LO.6 Olivia, a calendar year taxpayer,…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 23P

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Similar questions

Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. What is the maximum amount that Karen may deduct for contributions to her IRA for 2019? $__________________________ If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2019? $__________________________
Arlen is required by his 2019 divorce agreement to pay alimony of $2,000 a month and child support of $ 2,000 a month to his ex-wife Jane. What is the tax treatment of these two payments for Arlen? What is the tax treatment of these two payments for Jane? Arlen_______________________________________________________________________________________________________________________________________________ Jane_______________________________________________________________________________________________________________________________________________
Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin collecting his Social Security benefits at that time. His monthly benefits will increase if he defers his starting date for the benefits. He has asked you to estimate how much his income tax will increase as a result of collecting Social Security. Charles and his wife Bernice B., file a joint return, have no other dependents, and claim the standard deduction. Their only income other than the Social Security benefits are: The Social Security benefits for the year would be 12,000. a. Complete Worksheet 1, Figuring Your Taxable Benefits, included in IRS Publication 915 to determine the taxable portion of this couples taxable Social Security benefits (the publication includes a blank worksheet). b. What is the taxable portion of the 12,000 in Social Security benefits?
Aliya files her current year tax return on June 18 of the following year. On October 8 she pays the amount due, if any, without requesting an extension. The tax shown on her return is $30,000. Aliya pays no estimated taxes and claims no tax credits on her current year return. Read the requirements. Requirement a. What penalties will the IRS likely impose on Aliya (ignoring the penalty for underpayment of estimated taxes)? On what dollar amount, and for how many days, will Aliya owe interest? Assume Aliya committed no fraud and that any penalty and interest period begins on April 16. Assume her wage withholding tax amounts to $23,000. Complete the table below to show the penalties that the IRS will likely impose on Aliya. Minus: Total penalties Aliya owes interest on for days. Requirement b. What penalties will the IRS likely impose on Aliya (ignoring the penalty for underpayment of estimated taxes)? On what dollar amount, and for how many days, will Aliya owe interest? Assume Aliya…
Anthony filed his 2023 tax return on May 29, 2024 and never properly extended his tax return. Anthony owed $7,100 which was paid on April 15, 2024. How much is his failure to file penalty?
John 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: $ X
Max, a self-employed taxpayer, did not have all the information he needed to timely file his 2021 tax return by April 18, 2022. Although he requested an automatic extension, he did not include a payment when he filed the extension. He then filed his return ten days later, on April 28, 2022, reporting a $1,150 balance due. Which, statement is correct regarding the failute-to-file and failure-to-pay penalties?
Rita, a calendar-year individual taxpayer, files her 2018 income tax return on October 5, 2020. An extension for filing her income tax return was not obtained. The tax return reflects additional income tax due of $20,000. What is the amount of Rita's penalties for failure to pay and for failure to file?
Tim, a self-employed taxpayer, did not have all the information he needed to timely file his 2020 tax return by May 17, 2021. Although he requested an automatic extension, he did not include a payment when he filed the extension. He then filed his return ten days later, on May 27, 2021, reporting a $950 balance due. How much must Max pay in failure-to-file and failure-to-pay penalties? No failure-to-file penalty or failure-to-pay penalty will apply. His failure-to-file penalty is $0, but he has a failure-to-pay penalty of 0.5% of his unpaid tax. His failure-to-file penalty is 5% of his unpaid tax. He also has a failure-to-pay penalty of 0.5%, for an overall total of 5.5%. He has a $435 failure-to-file penalty plus an additional penalty of 0.5%, applied to his unpaid tax.

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