Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alyssa files her current year tax return on June 18 of the following year. On July 8 she pays the amount due, if any,
Alyssa files her current year tax return on June 18 of the following year. On July 8 she pays the amount due, if any, without requesting an extension. The tax shown on her return is $34,000. Alyssa pays no estimated taxes and claims no tax credits on her current year return. Requirement a. What penalties will the IRS likely impose on Alyssa (ignoring the penalty for underpayment of estimated taxes)? On what dollar amount, and for how many days, will Alyssa owe interest? Assume Alyssa committed no fraud and that any penalty and interest period begins on April 16. Assume her wage withholding tax amounts to $22,000. Complete the table below to show the penalties that the IRS will likely impose on Alyssa. Minus: Total penalties Alyssa owes interest on for days. Requirement b. What penalties will the IRS likely impose on Alyssa (ignoring the penalty for underpayment of estimated taxes)? On what dollar amount, and for how many days, will Alyssa owe interest? Assume Alyssa committed no fraud and that any penalty and interest period begins on April 16. Assume her wage withholding tax amounts to $40,000. Alyssa will owe Requirement c. How would your answer to Part a change if Alyssa requests an automatic extension? If Alyssa requests an extension, the
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started