SWFT Comprehensive Volume 2019
42nd Edition
ISBN: 9780357233306
Author: Maloney
Publisher: Cengage
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Students have asked these similar questions
Neville's 2020 return was audited by the IRS and was assessed $18,000 in tax. Assuming his actions were negligent, not fraudulent, what is his accuracy 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
Andrea's 2020 return was audited by the IRS. Andrea failed to report taxable interest income on her return, which resulted in an assessment of $8,000 in tax. Assuming her actions were intentional and fraudulent, what is her accuracy penalty?
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- An individual who resides in Saskatchewan has not filed her 2017, 2018 and 2019 income tax return because the individual was told that withholdings for source deductions were sufficient and that no tax would be owing for the three years. The individual has since learned that the withholdings for source deductions were excessive and that the individual is entitled to a refund for all three years. The individual files all three income tax returns on September 29, 2022. Refunds will be issued for the following years: O a. All three years i O b. 2019 Oc 2017 & 2018 Od. None of the yearsarrow_forwardEddie's new client, Felicity, has a meal delivery service. Upon reviewing Felicity's prior-year returns, Eddie realizes that Felicity incorrectly deducted the cost of parking tickets for illegally parked delivery vans for the last two years. The ethical standards or Circular 230, Subpart B require Eddie to: Notify the IRS of the error on prior-year returns. Insist that Felicity amend her prior-year returns, and refuse to assist her with any other tax preparation unless she agrees. Reduce her current-year business expenses by the amount of the incorrect prior-year deductions. Explain to Felicity that the deduction is disallowed and could lead to penalties, and encourage her to amend her prior-year returnsarrow_forwardOn April 15, 2018, the taxpayer filed its Form 1120, U.S. Corporation Income Tax Return, for the 2017 taxable year. On this Form 1120, the taxpayer reported gross income of $1,000,000 but did not report $400,000 it received from its foreign affiliate. However, on the Form 1120 it disclosed the omitted income and explained that the $400,000 was a return of capital and not gross income. When does the statute of limitations for examining taxpayer’s 2017 taxable year?arrow_forward
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