Question

According to the Internal Revenue Service, income tax returns one year averaged $1,332 in refunds for...

According to the Internal Revenue Service, income tax returns one year averaged $1,332 in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than to owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are normally distributed.

(a)What proportion of tax returns show a refund greater than $2,100?
(b)What proportion of the tax returns show that the taxpayer owes money to the government?
(c)What proportion of the tax returns show a refund between $130 and $720?

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
According to the Internal Revenue Service, income tax returns one year averaged $1,332 in refunds for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • According to the Internal Revenue Service, the mean tax refund for the year 2014 was $2,800....

    According to the Internal Revenue Service, the mean tax refund for the year 2014 was $2,800. Assume the standard deviation is $450 and that the amounts refunded follow a normal probability distribution a. What percent of the refunds are more than $3,100? (Round the Intermediate values to 2 decimal places. Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. Percent 24.14% b. What percent of the refunds are more than $3,100 but less than...

  • The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and...

    The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posting answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold...

  • Bruce and Anna Wayne 3 children living at home under the age of 17 $78,000 gross...

    Bruce and Anna Wayne 3 children living at home under the age of 17 $78,000 gross annual combined salaries $2,000 invested in Bruce's IRA during the year $580 in a savings account interest $400 in dividends from Bats Inc 300 shares of stock sold for $27 per share on July 2, this year (plus a $50 brokerage commission).  The stock was purchased for $10 per share 1 year ago (plus a $50 brokerage commission). $4,300 in medical expenses $9,000 in...

  • The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and...

    The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posting answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold...

  • Answer TRUE OR FALSE. CHAPTER 1 1. Two notable trends in tax revenue sources is that...

    Answer TRUE OR FALSE. CHAPTER 1 1. Two notable trends in tax revenue sources is that social security taxes have decreased gradually while corporate income taxes have increased gradually over the last fifty years. 2. If a progressive tax rate system is used, as a taxpayer's taxable income decreases, a progressively higher rate of tax is applied. 3. The marginal tax rate measures the tax rate applicable to the next dollar of income or deduction for a taxpayer. 4. All...

  • Accounting for personal income taxes Saralisa City, which operates on a calendar year basis, obtains 40...

    Accounting for personal income taxes Saralisa City, which operates on a calendar year basis, obtains 40 percent of its revenues from personal income taxes. Employers are required to withhold taxes from the earnings of city residents and remit them to the city monthly City residents must also make payments, if necessary, with quarterly tax estimates. No later than April 15 of the following year, residents must file tax retums, remitting any additional taxes due to the city or claiming refunds...

  • 31. Use the information from page 22 of your study guide and Figure 3-6 on page...

    31. Use the information from page 22 of your study guide and Figure 3-6 on page 79 in your textbook to answer the following questions. A. If John's filing status was Married what is John's taxable income? B. If John's filing status was Married, how much would his tax refund be? C. How does your marital status affect how much is paid in federal income taxes? 79 t: Personal Information gep name, current address, and Social Security number should be...

  • For tax purposes, "gross income" is all the money a person receives in a given year from any sour...

    If any could please help with question E & F Answer for Question C is $37,500 For tax purposes, "gross income" is all the money a person receives in a given year from any source. But income taxes are levied or "taxable income" rather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $50,000 last year in wages, earned $10,000 from investments, and were given...

  • Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first...

    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...

  • The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion...

    The Commissioner of Internal Revenue ("Commissioner") appeals the Tax Court's decision that he abused his discretion in requiring Jim Turin & Sons, Inc. ("taxpayer"), to use the accrual method of accounting to compute its federal taxes for the tax years at issue. In particular, the Commissioner contests the Tax Court's finding that emulsified asphalt is not "merchandise," as that term is used in 26 C.F.R.S 1.471-1. The Tax Court had jurisdiction pursuant to 26 U.S.C.SS 6213, 6214, and 7442. We...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT