Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Last year, your client, Roberto Dinero, mailed an automatic extension for his tax return on April 15. He enclosed a check for $10,000 with

1. Last year, your client, Roberto Dinero, mailed an automatic extension for his tax return on April 15. He enclosed a check for $10,000 with the extension request. The IRS cashed the check on April 28. Later, the IRS assessed Roberto late filing penalties of $2,900 because they claim he did not mail the extension request on time. On the same date, Roberto mailed an income tax extension request and check to the state of California. The California check was cashed on April 23. You requested that the IRS send you a copy of the extension request envelope showing the postmark; however, the IRS has lost it. The IRS recently attached Robertos bank account for the $2,900, thereby seizing the funds directly. You have known Roberto for years, and he could be described as a good, law-abiding, taxpaying citizen. He always pays his taxes on time, has never been in trouble with the IRS, and is not a tax protester. Roberto asks you to recommend whether he should engage a tax attorney and sue for a refund, knowing that the legal fees for such an action will probably exceed $10,000.

Facts:

Issues:

conclusion:

Authorities:

Analysis:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Interpreting Accounting Information For Decision Making

Authors: Paul M. Collier

1st Edition

0470845023, 9780470845028

More Books

Students also viewed these Accounting questions

Question

=+a. Write two different, but related, headlines.

Answered: 1 week ago