South-Western Federal Taxation 2019: Comprehensive, Loose-leaf Version, 42nd + CengageNOWv2, 2 term Printed Access with Access
42nd Edition
ISBN: 9781337813525
Author: Jr William H. Hoffman
Publisher: Cengage Learning
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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
Ms. Schmidt didn't request an extension of time to file a 2022 income tax return and didn't mail the completed return to the IRS until
August 8, 2023. Ms. Schmidt enclosed a check for $2,610, the correct balance of tax due with the return.
Required:
a. Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late-payment
penalty.
b. Compute the late-filing and late-payment penalty if the return was not mailed until November 21.
Complete this question by entering your answers in the tabs below.
Required A Required B
Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late-
payment penalty.
Late-filing and late-payment penalty
< Required A
Required B
Ms. Schmidt didn't request an extension of time to file a 2021 income tax return and didn't mail the completed return to the IRS until
August 8, 2022. Ms. Schmidt enclosed a check for $3,490, the correct balance of tax due with the return.
Required:
a. Assuming that Ms. Schmidt can't show reasonable cause for filing a delinquent return, compute the late-filing and late-payment
penalty.
b. Compute the late-filing and late-payment penalty if the return was not mailed until November 21.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the late-filing and late-payment penalty if the return was not mailed until November 21.
Note: Round your intermediate and final calculations to the nearest whole dollar amount.
Late-filing and late-payment penalty
$
698 x
< Required A
Required B
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- 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.arrow_forwardNorman Foster filed his 2021 income tax return as was required on June 15, 2022. His Notice of Assessment dated August 28, 2022, indicated that his 2021 income tax return was accepted as filed. On March 15, 2023, he receives a Notice of Reassessment dated March 8, 2023 indicating that he owes additional income tax, as well as interest on the unpaid amounts. What is the latest date for filing a notice of objection for this reassessment? Explain your answer.arrow_forwardBrandon had only earned income for 2023 and was interesting if he could be eligible for the earned income credit. He was pleasantly surprised that he qualified for a $6,000 credit. For 2023, his Form 1040 revealed tax liability of $4,000, and his employer withheld $4,500 for the year. Since Brandon was already getting a $500 income tax refund, he was unable to use any of the credit. Group of answer choices True Falsearrow_forward
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