Chapter 10: Learning Activity Scenario 1 - Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years Prior to their final divorce decree, they filed joint returns. During the time they were separated, Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Internal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relief because he had no knowledge of the lottery winnings? Scenario 2 - Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint return. They live at 3434 Persimmon Way Your Cty Your State - Your ZIP They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support, Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12.000 in delinquent child support and is aware that his current year federal tax refund will also be seized, Penny wants to ensure that she receives her portion of the refund Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year and both had federal taxes withheld from their wages. Their financial statements follow the questions below. If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniel's child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? arge SSN 300-8146 OMENA 54 CE 1 . og 2 F e ed 38.642.00 206.39 Soluty wages 4 Scalety tax whe 39542.00 Medicare ages and to Medicare box with 26529 Employer derfation 57.55.46661 e r Employer's a ss and ZIP code Sacred Heart Academy 200 Seminary Lane Your City. Your State - Your ZIP Employee's strane and in Penny 3434 Persimmon Way Your City, Your State - Your ZIP ZIP code Em a Control Number 7 Social Security tips located tips 10 Dependent care benefits Nongulfed plans D 120000 1) Statuary loyee Employer 575544661 Retirement pla 10 Stat s s the party ickay 175 ruber YS 38442.00 Copy to be fled w for W-2 wage and Tax Steert 20XX amployee's Federal income Tax Return This information is being furnished to the Internal Revenue Service you are required e a tax retur, a negligence penalty or other sanction may be imposed on you this Income stable and you to report b DES 502-00-1589 IN . file m e Employe 63-0005123 croyer's name, 981456 and ZP de ONE No 1545.000 e Tags for the coste 42681.52 3 Social Security wages 42681.52 Vedican wages and to 42681.52 750 Sony cauty the Medicare xwed St. Mary's Hospital 211 Wheaton Blvd Your City. Your State - Your Zip 2646.25 616.88 Arcos d Control rumber 9 Verification code 10 Dependent care benefits 11 Norqualified plans 12a Seinstructions for box 12 m es frame and tal Last name Daniel Strickland 13 Sty Reement Theory employee 3434 Persimmon Lane Your City, Your State - Your Zip r y 15 YS 's tress and ZIP code Employer's st 630005123 a te ages. Ipsele 42681.52 17 Site income tax 2207,28 is local wageslips ett local come 20 W Wage and Tax Department of the Treasury - Reverse Form W-2 Suitement 20XX Copy To Be Fred Win Employee's FEDERAL Tax Return This mon segundo tema Revenue Service Chapter 10: Learning Activity Questions 1. Answer the following question based on the information in Scenario 1 for Wesley and Anne. Both Wesley and Anne are liable for any tax interest, or penalty due. C A) True CB) False 2. Answer the following question based on the information in Scenario 1 for Wesley and Anne. Wesley should file a request for innocent spouse relief because he had no knowledge of the lottery winnings. C A) True DB) False 3. Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland If Penny files a joint return with Daniel and she is due a refund, her part of the refund could be seized by the IRS for the delinquent child support. C O A) True B) False Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland. Penny is responsible for Daniel's child support debt. C A) True CB) False Chapter 10: Learning Activity Scenario 1 - Wesley and Anne Wesley has been divorced from Anne for six months. They have not lived together for two years Prior to their final divorce decree, they filed joint returns. During the time they were separated, Anne won $25,000 from the lottery. Wesley was unaware that Anne had lottery winnings, which she failed to report. Wesley and Anne have received notification from the Internal Revenue Service that their return has been changed to reflect an increase in income and tax liability due to the lottery winnings. They have also been assessed with interest and penalties. Are both Wesley and Anne liable for any tax, interest, or penalty due? Should Wesley file a request for innocent spouse relief because he had no knowledge of the lottery winnings? Scenario 2 - Daniel and Penny Strickland Complete a tax return for the Stricklands. Daniel (age 35, DOB: 4/21/1983, SSN: 502-00-1589) and Penny Strickland (age 29, DOB: 11/25/1989, SSN: 223-00-8146) were married in August and have decided to file a joint return. They live at 3434 Persimmon Way Your Cty Your State - Your ZIP They did not live in a community property state at any time during the tax year. Both Daniel and Penny wish to contribute $3 to the Presidential Election Campaign. They were both covered by a health insurance plan for the entire year. Daniel has two children from a previous marriage for whom he is currently paying child support, Three years ago, Daniel was out of work for 18 months due to a medical condition and as a result his child support payments became delinquent. The Internal Revenue Service was notified of his arrearage and seized his previous year's federal tax refund. Daniel still owes more than $12.000 in delinquent child support and is aware that his current year federal tax refund will also be seized, Penny wants to ensure that she receives her portion of the refund Penny is still paying on student loans and paid $969 in student loan interest during the tax year. Daniel is a nurse and Penny is a teacher, they have been employed all year and both had federal taxes withheld from their wages. Their financial statements follow the questions below. If Penny files a joint return with Daniel and she is due a refund, could her part of the refund be seized by the IRS for the delinquent child support? Is Penny responsible for Daniel's child support debt? Could Penny choose to file Married Filing Separately? Could Penny file a joint return with Daniel and attach an injured spouse allocation to the return that would entitle her to receive the portion of the refund that would have been considered hers? arge SSN 300-8146 OMENA 54 CE 1 . og 2 F e ed 38.642.00 206.39 Soluty wages 4 Scalety tax whe 39542.00 Medicare ages and to Medicare box with 26529 Employer derfation 57.55.46661 e r Employer's a ss and ZIP code Sacred Heart Academy 200 Seminary Lane Your City. Your State - Your ZIP Employee's strane and in Penny 3434 Persimmon Way Your City, Your State - Your ZIP ZIP code Em a Control Number 7 Social Security tips located tips 10 Dependent care benefits Nongulfed plans D 120000 1) Statuary loyee Employer 575544661 Retirement pla 10 Stat s s the party ickay 175 ruber YS 38442.00 Copy to be fled w for W-2 wage and Tax Steert 20XX amployee's Federal income Tax Return This information is being furnished to the Internal Revenue Service you are required e a tax retur, a negligence penalty or other sanction may be imposed on you this Income stable and you to report b DES 502-00-1589 IN . file m e Employe 63-0005123 croyer's name, 981456 and ZP de ONE No 1545.000 e Tags for the coste 42681.52 3 Social Security wages 42681.52 Vedican wages and to 42681.52 750 Sony cauty the Medicare xwed St. Mary's Hospital 211 Wheaton Blvd Your City. Your State - Your Zip 2646.25 616.88 Arcos d Control rumber 9 Verification code 10 Dependent care benefits 11 Norqualified plans 12a Seinstructions for box 12 m es frame and tal Last name Daniel Strickland 13 Sty Reement Theory employee 3434 Persimmon Lane Your City, Your State - Your Zip r y 15 YS 's tress and ZIP code Employer's st 630005123 a te ages. Ipsele 42681.52 17 Site income tax 2207,28 is local wageslips ett local come 20 W Wage and Tax Department of the Treasury - Reverse Form W-2 Suitement 20XX Copy To Be Fred Win Employee's FEDERAL Tax Return This mon segundo tema Revenue Service Chapter 10: Learning Activity Questions 1. Answer the following question based on the information in Scenario 1 for Wesley and Anne. Both Wesley and Anne are liable for any tax interest, or penalty due. C A) True CB) False 2. Answer the following question based on the information in Scenario 1 for Wesley and Anne. Wesley should file a request for innocent spouse relief because he had no knowledge of the lottery winnings. C A) True DB) False 3. Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland If Penny files a joint return with Daniel and she is due a refund, her part of the refund could be seized by the IRS for the delinquent child support. C O A) True B) False Answer the following question based on the information in Scenario 2 for Daniel and Penny Strickland. Penny is responsible for Daniel's child support debt. C A) True CB) False