You are a staff accountant for a local CPA firm, Meyers and Meyers, LLP. One of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are a staff accountant for a local CPA firm, Meyers and Meyers, LLP. One of your clients, Paula Evans, contacted you in February of 2020 about a new partnership she formed with four others. The partnership, Wildwood Acres Partnership, was started in the middle of 2018 and reports on a calendar year basis (the tax year ends on December 31). Unfortunately, Paula contacted you a little late since the 2018 partnership return was due on April 15, 2019. Paula provided the information and your office promptly prepared the return in late February, 2020. The transmittal letter to Paula included a paragraph warning her that the IRS would probably assess penalties for late filing. Penalties for partnerships that file late are $195 per partner, per month (or any part thereof). On March 29, 2020, Paula called and said she received a late filing penalty notice assessing $10,725. She faxed the notice to you for review (a copy is available on Blackboard in the ICW #8 folder). Based on your review, the assessed amount is calculated correctly. Facts regarding the partnership: 1. All five partners are individuals and US citizens. 2. All five partners timely filed their 2018 individual income tax returns in 2019 and included their share of partnership taxable income. 3. All five partners are equal owners of the partnership Paula wants you to respond to the IRS notice and request relief from the penalty. Assignment: Prepare a response letter to the IRS requesting abatement of the penalties based on Rev. Proc. 84-35. Be sure and reference any attachments you would include with the response letter, even though you won't be submitting the attachments on Turnitin. Upload your word or pdf file using Turnitin on Blackboard. No late submissions! We Charged a Penalty on Your Partnership Tax Return Why You are Getting This Notice We charged a penalty under Internal Revenue Code Section 6698 (a) (1) because, according to our records, you filed your partnership return late. How We Calculated the Amount You Owe The penalty is $195 for each person who was a partner at any time during the tax year, for each month or part of a month the return was late, for up to 12 months. Number of Partners Late Filing Penalty Total Penalty $10,725.00 $10,725.00 Less Penalty Paid S.00 Total Amount You Owe S10,725.00 Subtract Payments We Have Not Included Pay the Adjusted Amount Due You are a staff accountant for a local CPA firm, Meyers and Meyers, LLP. One of your clients, Paula Evans, contacted you in February of 2020 about a new partnership she formed with four others. The partnership, Wildwood Acres Partnership, was started in the middle of 2018 and reports on a calendar year basis (the tax year ends on December 31). Unfortunately, Paula contacted you a little late since the 2018 partnership return was due on April 15, 2019. Paula provided the information and your office promptly prepared the return in late February, 2020. The transmittal letter to Paula included a paragraph warning her that the IRS would probably assess penalties for late filing. Penalties for partnerships that file late are $195 per partner, per month (or any part thereof). On March 29, 2020, Paula called and said she received a late filing penalty notice assessing $10,725. She faxed the notice to you for review (a copy is available on Blackboard in the ICW #8 folder). Based on your review, the assessed amount is calculated correctly. Facts regarding the partnership: 1. All five partners are individuals and US citizens. 2. All five partners timely filed their 2018 individual income tax returns in 2019 and included their share of partnership taxable income. 3. All five partners are equal owners of the partnership Paula wants you to respond to the IRS notice and request relief from the penalty. Assignment: Prepare a response letter to the IRS requesting abatement of the penalties based on Rev. Proc. 84-35. Be sure and reference any attachments you would include with the response letter, even though you won't be submitting the attachments on Turnitin. Upload your word or pdf file using Turnitin on Blackboard. No late submissions! We Charged a Penalty on Your Partnership Tax Return Why You are Getting This Notice We charged a penalty under Internal Revenue Code Section 6698 (a) (1) because, according to our records, you filed your partnership return late. How We Calculated the Amount You Owe The penalty is $195 for each person who was a partner at any time during the tax year, for each month or part of a month the return was late, for up to 12 months. Number of Partners Late Filing Penalty Total Penalty $10,725.00 $10,725.00 Less Penalty Paid S.00 Total Amount You Owe S10,725.00 Subtract Payments We Have Not Included Pay the Adjusted Amount Due
Expert Answer:
Answer rating: 100% (QA)
Feedback Submission According to the information provided it may be eligible for a reduction on the ... View the full answer
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Posted Date:
Students also viewed these marketing questions
-
Someone replace the 250-foot tubing refrigerator's water tank. ID = 0.17", OD = 0.25". Polyethylene tube does have a thermal conductivity of 0.44 W/m.K. Water enters the refrigerator at room...
-
You are a staff auditor on a very important audit engagement. You are assigned to audit two parts of your clients purchasing department. After several days of studying purchase orders and sales...
-
You are a staff accountant at Anderson & Paul, a CPA firm located in downtown San Diego. A long-time client, Brady Patterson, has contacted you with a request. Brady is 32 years old, is beginning...
-
Select only 2. Two questions which can be used to address ethical issues impacting organizations and Human Resource Management include: What would my Supervisor say? Does this behavior or result meet...
-
Enron and Andersen suffered severe consequences because of their perceived lack of integrity and damaged reputations. In fact, some people believe the fall of Enron occurred because of a form of "run...
-
What is social entertainment? What is branded entertainment? How is it distinguished from content marketing used in social publishing?
-
In a differential wheel and axle, the diameter of the larger axle is 250 mm and that of the smaller 225 mm. The diameter of effort wheel is 500 mm. Find the velocity ratio. If an effort of 150 N...
-
The SEC took action against Gateway Computer in 2001 because they believed that Gateway systematically understated their allowance for doubtful accounts to meet sales and earnings targets. This is...
-
Please include APA FORMAT AND REFERENCES https://www.livecareer.com/quintessential/sample-behavioral "Free Sample Behavioral Interview Questions for Job-Seekers, W5: Behavioral Interview Questions...
-
Larry, age 32, works for Horizon Corporation. His annual salary is $60,000 and he is not a key employee. Horizon provides the following benefits to all employees: Group term life insurance (each...
-
Need to create an Xcel spreadsheet similar to the one pictured above. Here are requirements Identify the owner of each type of data that exists at an organization dealing with software technology...
-
Calculate a firm's WACC, given that the total value of the firm is $2,000,000, $600,000 of which is debt, the costs of debt and equity are 10% and 15% respectively, and the firm pays no taxes.
-
(20 points) Construct a pushdown automaton for the following language: [a b ck | i, j, k20, i + k = j}
-
Calculate base case financial breakeven level of output. What is the degree of operating leverage (DOL) at this point and discuss the answer.
-
How do investors use stock fundamentals to construct portfolios? Please use any three fundamentals to illustrate the method.
-
Euro Tech. earned $120 million this year. They announced an annual dividend of 40% of its earnings. The Tech Company has around 30 million shares outstanding. It is expected that the company's...
-
Solve the logarithmic equation algebraically. Round the result to three decimal places. Verify your answer(s) using a graphing utility. In(x+6) In(x-3) = In(x) x =
-
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
-
Why is it important to obtain documentary evidence?
-
During the discovery stage in the legal process, why would opposing sides be cooperative in providing information about evidence they intend to introduce during the trial?
-
1. Do you think Gardiah Mfana is an actual person? 2. Do you believe that his proposition is real? Why or why not? 3. List and explain at least three elements of fraud that are present in this...
-
A company with a price-earnings ratio of 14 has an earnings yield closest to: A. 7.14% B. 14.00% C. 92.86%
-
Which of the following is not produced by a company to communicate its financial results? A. Schedule 13D. B. Annual report. C. 10-K statement.
-
The role of the 8-K filing with the Securities and Exchange Commission is best described as to disclose: A. the annual report. B. executive compensation. C. holdings of beneficial owners.
Study smarter with the SolutionInn App