Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blanche Creek has engaged your firm because she has been charged with failure to file her 2011 Federal Form 1040. Blanche maintains that the reasonable

Blanche Creek has engaged your firm because she has been charged with failure to file her 2011 Federal Form 1040. Blanche maintains that the "reasonable cause" exception should apply. During the entire tax filing season in 2012, she was under a great deal of stress at work and in her personal life. As a result, Blanche developed a sleep disorder, which was treated through a combination of pills and counseling. Your firm ultimately prepared the 2010 tax return in 2014. The return showed additional tax due of $15,000. Blanche is willing to pay the delinquent tax and related interest. However, she feels that the failure-to-pay penalty is unfair, as she was ill. Consequently, she could not be expected to meet the usual deadlines for filing.

Determine the amount of the penalty for failure to file and research the reasonable cause exception to penalty. With all appropriate citations, stating an opinion as to whether Blanche will be successful in her request to have the penalty abated.

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

Financial Management Theory And Practice

Authors: Prasanna Chandra

10th Edition

9353166527, 978-9353166526

More Books

Students also viewed these Finance questions

Question

List the four steps in the delegation process.

Answered: 1 week ago

Question

=+13.5. Show of real functions f and g that f(w) + g(w)

Answered: 1 week ago

Question

2.1 Produce critical m Chodo.ogy vi us based ugon , esearch

Answered: 1 week ago

Question

1. Discuss the four components of language.

Answered: 1 week ago