Olivia filed her tax return on time but did not pay her taxes until four months after they were due. She owed $20,000. What is her late payment penalty amount?
If a taxpayer fails to pay the balance due shown on the tax return by the due date (even if the reason of nonpayment is a bounced check), there is a penalty of 0.5% of the amount of unpaid tax per month (or partial month), up to a maximum of 25%.
1 )So accordingly, 0.5% of $20000 for four months is, $20000*0.5%*4 =$400
Maximum of 25%= $20000*25%= $5000
So Olivia has to pay $400 as her late payment penalty fees.
Olivia filed her tax return on time but did not pay her taxes until four months...
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...
Sophia filed her 2018 return and paid the taxes on November 1, 2019. She did not have a valid extension of time to file. In which of the following situations would she most likely qualify for a penalty exception Question 56 of 65. Sofia filed her 2018 return and paid the taxes on November 1, 2019. She did not have a valid extension of time to file. In which of the following situations would she most likely qualify for a...
Self-Study Problem 12.3 Part a: Linda filed her tax return 2 months late. The tax paid with the return amounts to $3,000. What is Linda's total penalty for failure to file and failure to pay, assuming the failure to file is not fraudulent? $__________ Part b: Kim underpaid her taxes by $10,000 due to negligence. What is Kim's penalty for negligence? $_________ Part c: Using the same information as in Part b, what is the amount of the penalty if...
Wade filed his federal income tax return on time but did not remit the balance due. The IRS has not issued a deficiency notice. Enter wades failure to pay penalty in each of the following cases. Four months, ten months and five years late
Problem 12-3 (Algorithmic) Interest and Penalties (LO 12.3) Compute the penalty described for the following taxpayers. If an amount is zero, enter "O". If required, round your answers to two decimal places. a. Wilson filed his individual tax return on the original due date, but failed to pay $2,220 in taxes that were due with the return. If Wilson pays the taxes exactly 11 months late, calculate the amount of his failure-to-pay penalty. b. Joan filed her individual income tax...
Ella carelessly filed her taxes 10 months late. She owed $100,000 in taxes. What is Ella's late filing penalty?
Problem 12-3 (Algorithmic) Interest and Penalties (LO 12.3) Compute the penalty described for the following taxpayers. If an amount is zero, enter "0". If required, round your answers to two decimal places. a. Wilson filed his individual tax return on the original due date, but failed to pay $21,220 in taxes that were due with the return. If Wilson pays the taxes exactly 13 months late, calculate the amount of his failure-to-pay penalty. $ Feedback b. Joan filed her individual...
Oliver carelessly filed his taxes four months late. He owed $60,000 in taxes. What is his late filing penalty?
Problem 17-26 (a) (LO. 6) Melinda, a cash basis, calendar year taxpayer, filed a 90-day extension for her Federal income tax return without any tax payment. She paid the taxes that were due when she filed the return 65 days after the due date. a. What penalty or penalties will Melinda incur? Melinda is liable for only the failure to pay penalty b. How much will she have to pay if her additional tax is $75,000? Disregard any interest she...
At the time Sherry signed her joint return, she knew that her spouse did not report $5,000 of gambling winnings. The IRS examined the tax return several months after she filed it and determined that her spouse's unreported gambling winnings were actually $25,000. Sherry established that she did not know about, and had no reason to know about, the additional $20,000 because of the way her spouse handled gambling winnings. If Sherry meets the other requirements, what amount of the...