Problem 18-22 (Static) [LO 18-5] Ms. Perez is a professional tax return preparer. Three years ago, Ms. Perez prepared Form 1120 for Denver, Inc. The tax preparation fee was $14,850. Upon audit of the return, the IRS disallowed a $112,000 deduction, which increased the corporation's tax liability by $39,200. Required: a. Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez had no reasonable legal basis for claiming the deduction and was not acting in good faith by doing so. b. Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez intentionally disregarded the tax law by claiming the deduction in a willful attempt to understate Denver's tax. c. Compute Ms. Perez's preparer penalty to Parts (a) and (b), if Ms. Perez's preparation fee was only $3,500? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez had no reasonable legal basis for claiming the deduction and was not acting in good faith by doing so. Preparer penalty < Required A Required B >

Problem 18-22 (Static) [LO 18-5] Ms. Perez is a professional tax return preparer. Three years ago, Ms. Perez prepared Form 1120 for Denver, Inc. The tax preparation fee was $14,850. Upon audit of the return, the IRS disallowed a $112,000 deduction, which increased the corporation's tax liability by $39,200. Required: a. Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez had no reasonable legal basis for claiming the deduction and was not acting in good faith by doing so. b. Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez intentionally disregarded the tax law by claiming the deduction in a willful attempt to understate Denver's tax. c. Compute Ms. Perez's preparer penalty to Parts (a) and (b), if Ms. Perez's preparation fee was only $3,500? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Ms. Perez's preparer penalty if the IRS concludes that Ms. Perez had no reasonable legal basis for claiming the deduction and was not acting in good faith by doing so. Preparer penalty < Required A Required B >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hello, This question is regarding late tax filing I am trying to solve it according to the formula but everytime I am getting wrong answer anyone please help me solve this question to get right answer I am attaching my work with question