Explain the tax consequences of either filing no tax return when you had income, filing a fraudulent return, and failing to pay the amount owed to the IRS.
Not filing returns when having an income or filing wrong returns deliberately or not paying any monies owed as tax to the IRS are all forms of tax evasion and comes under the definition of Income Tax fraud. The consequences of these are as follows:
Explain the tax consequences of either filing no tax return when you had income, filing a...
a. Wilson filed his individual tax return on the original due date, but failed to pay $18,720 in taxes that were due with the return. If Wilson pays the taxes exactly 7 months late, calculate the amount of his failure-to-pay penalty. b. Joan filed her individual income tax return 4 months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $9,710, which was the balance of...
The IRS allows you to reduce your adjusted gross income by either the amount of your standard deduction based on your filing status, or by the sum of your itemized deductions. The following statement refers to deductions from adjusted gross income. The government estimates a likely amount of tax-deductible expenses for each filing status to determine the The U.S. Individual Income Tax Return (Form 1040) Schedule A lists six areas of itemized deductions. Which of the following can be included...
1 The Browns are filing a joint return and have had a significant increase in income during the tax year. The Browns are concerned they may be subject to altenative minimum tax (AMT). A Married Filing Jointly taxpayer may be subject to alternative minimum tax if his taxable income for regular tax purposes along with certain adjustments and tax preference items exceeds which of the following exemption amounts? a) $41,900 b) $53,900 c) $70,700 d) $83,800 2. The Browns must...
checking account records and noticed the cash deposit and realized his mistake. Ethical Dilemma. When Larry filed his taxes he forgot to include $2,500 in cash income he earned painting a friend's house. He was going through a. Should Larry ignore his mistake or file an amended return? Why or why not? b. What are possible consequences of Larry ignoring the error? a. Should Larry ignore his mistake or file an amended return? Why or why not? (Select the best...
[6] When a member of the AICPA prepares a taxpayer’s federal income tax return, the member has the responsibility to A. Be an advocate for the entity’s position. B. Verify the data to be used in preparing the return. C. Take a position of independent neutrality. D. Argue the position of the Internal Revenue Service. The correct answer is A. A. A member of the AICPA engaged in tax practice has the right and responsibility to be an advocate for...
Married couples filing jointly can claim exemption of $3,950 per person and they are allowed a standard deduction of $13,400. Polly and Steve had joint earned income of $18,600 this year, as they are both graduate students. Based on their status and income, Polly and Steve will satisfy the IRS rules if only one of them files a single return. are not required to file a tax return, but should do so if they are owed a refund. are required...
Can you deduct business expenses from a tax return if the business is new and had no income in the year? Which IRS Codes are applicable?
Comparing the tax on $350,000 of taxable income for each tax filing status, the filing status that produces the greatest amount of tax is married filing seperatly. True of False
Erin receives Social security income. she is married filing a joint return for the tax year. what base amount does she apply in calculating the taxable portion of social security income under rule 1?
Rates for a couple filing a joint tax return are 10% up to $17,850 and 15% thereafter up to $72,500. Joanna and Delbert Linton earned combined gross income of $26,000. They took the standard deduction of $12,200 for a married couple filing a joint return and two exemptions of $3,900 each. Compute the amount of income tax.