Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing...
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Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing Frodo's 2021/22 income tax return, the following occurred: • Frodo attended a meeting with Mike in August 2022 where he instructed Mike to complete his return and handed over records that related to the tax return; Mike lodged the return in July 2023 resulting in a late lodgement penalty of $900; Subsequent audit activity showed that Mike had incorrectly not included $2,000 of interest income in Frodo's return - Frodo had provided Mike with all of his interest details; The audit also revealed that net rental income of $2,000 had not been included - Frodo had forgotten to mention his rental property to Mike; These two adjustments had resulted in a tax shortfall of $1,860 and penalties totalling $500; An attempt to audit Frodo's previous three years of tax returns revealed that Mike had thrown out all of Frodo's tax returns, vouchers, and records. A penalty of $3,600 was issued for incorrectly keeping records. How much will Frodo be required to pay for these adjustments and penalties? Which amounts will Mike be liable to pay? Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing Frodo's 2021/22 income tax return, the following occurred: • Frodo attended a meeting with Mike in August 2022 where he instructed Mike to complete his return and handed over records that related to the tax return; Mike lodged the return in July 2023 resulting in a late lodgement penalty of $900; Subsequent audit activity showed that Mike had incorrectly not included $2,000 of interest income in Frodo's return - Frodo had provided Mike with all of his interest details; The audit also revealed that net rental income of $2,000 had not been included - Frodo had forgotten to mention his rental property to Mike; These two adjustments had resulted in a tax shortfall of $1,860 and penalties totalling $500; An attempt to audit Frodo's previous three years of tax returns revealed that Mike had thrown out all of Frodo's tax returns, vouchers, and records. A penalty of $3,600 was issued for incorrectly keeping records. How much will Frodo be required to pay for these adjustments and penalties? Which amounts will Mike be liable to pay?
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Answer rating: 100% (QA)
Frodos liabilities Late lodgement penalty 900 Tax shortfall 1... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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