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Clive's tax liability for last year was $12,500, and his AGI did not exceed $150,000. Clive requests an automatic extension for filing his current
Clive's tax liability for last year was $12,500, and his AGI did not exceed $150,000. Clive requests an automatic extension for filing his current year individual return but does not pay any additional tax with his extension request. By April 15 of the following year, Clive has paid $15,000 of taxes in the form of wage withholding and estimated taxes. Clive files his current year return and pays the balance of the taxes due on July 2 of the following year. Clive owes the following penalties when his current year tax is (a) $21,000, and (b) $16,000. (Click the icon to view the factor table for a 6% interest rate, compounding daily.) (Click the icon to view the penalties owed.) Read the requirements. Requirement a. Will Clive owe interest? If so, on what amount and for how many days? Assume that any interest period begins on April 16 of a non-leap year. (Complete all input fields. Enter a "0" for the amount of interest and for the number of days if Clive owes no interest.) For Scenario (a) when Clive's current year tax is $21,000: Clive will owe interest on for For Scenario (b) when Clive's current year tax is $16,000: Clive will owe interest on for days. days.
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