For tax year 2017, the IRS assesses a deficiency against David for $235,000. a. Disregarding the...
For tax year 2017, the IRS assesses a deficiency against David for $235,000.
a. Disregarding the interest component, enter David's penalty if the deficiency is attributable to negligence: $.
b. Disregarding the interest component, enter David's penalty if the deficiency is attributable to civil fraud: $.
Homework Answers
Solution:
(a)David's penalty = Deficiency amount * Penalty Applicable
= $235,000 * 20%
= $47,000
(b) David's penalty = Deficiency amount * Penalty Applicable
= $235,000 * 75%
= $176,250
Add Answer to:
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