Question

Basle Scenarie 6: George and Helen Reed Interview Notes George and Helen have an 10-year-old son, Joshu. hold son, Joshua, who lived with them al and is a college slucdent. George and Helen provided all the support for the support for Joshua and all the costs of up their home. tederal withholding George, had $140 of Joshua worked during the year and received wages of $2.000. Ho and The Reeds have a balance due on Their return and are unsure what to do. and Joshua are U.S. oiltizens with valid Social Security numbers. Basie Scenario 6:Test Questions 11. What actions aonhouls Georpe and Heien take to prevent having a balance due net year? a. They should use the withholding calculator They should adjust their Form W.4 to increase withholding. C. There is no way to prevent a balance due. Both a and b. 12. What options do George and Helen have if they are not able to full pay their balance due by the due date of the return? a Wait to file their return until they have the money to pay the full amount owed. b, File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. c Pay as much as they can by the due date of the return and request a payment plan. Both a and c. d. 13. George and Helen ask if their son Joshua should file a tax return for 2018. should the volunteer respond? a. Joshua is exempt from filing because he is a student b. Joshua does not have to file because he is their dependent and they can claim How his income on their tax return. c Joshua must file based on the 2018filing hreshold for children and other dependents. Joshua should file a tax retun to claim a refund of his withholding

Answer 1

answer is c.Pay as much as they can by due date of return and request a payment plan

reason:

• Payment is to be made in full by due date, to avoid interest and penalties.
• Taxpayer should file his or her return by due date, to avoid a failure-to-file penalty.
• There are separate penalties for filing late and paying late. The late filing penalty is higher.
• taxpayers should to file the return on time, even if they can’t pay the full amount owed. They should pay as much as they can with the return to reduce penalties and interest