Olivia, a calendar year taxpayer, does not file her 2013 return until December 12, 2014. At this

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Olivia, a calendar year taxpayer, does not file her 2013 return until December 12, 2014. At this point, she pays the $40,000 balance due on her 2013 tax liability of $70,000. Olivia did not apply for and obtain any extension of time for filing the 2013 return. When questioned by the IRS on her delinquency, Olivia asserts: "If I was too busy to file my regular tax return, I was too busy to request an extension."
a. Is Olivia liable for any penalties for failure to file and for failure to pay?
b. If so, compute the penalty amounts.
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South Western Federal Taxation 2015

ISBN: 9781305310810

38th Edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

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