Problem 12-6
Interest and Penalties (LO 12.3)
For each of the following situations, select the nature of the penalty and calculate the amount that could be imposed.
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Problem 12-6 Interest and Penalties (LO 12.3) For each of the following situations, select the nature...
Problem 12-6 Interest and Penalties (LO 12.3) For each of the following situations, select the nature of the penalty and calculate the amount that could be imposed. Description of the Penalty Penalty Amount Filing a frivolous tax return a. Larry is a tax protester and files his tax return in the name of "Mickey Mouse." Bad check b. Anne writes a check for $900 in payment of her taxes that she knows will not clear the bank due to insufficient...
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...
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...
Problem 12-4 (Algorithmic) Interest and Penalties (LO 12.3) In the 2018 tax year, Michelle paid the following amounts relating to her 2016 tax return: Tax deficiency Negligence penalty $4,700 940 470 235 Interest Underpayment of estimated tax penalty Which of the above items may be deducted on Michelle's 2018 individual income tax return? $0 $235 $4,700 $5,405 $6,345
Comprehensive Problem 6-52 (LO 6-1, LO 6-2, LO 6-3) [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...