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Patrick Von Radesky, an engineer with Century Power and Light, earns a gross income of $6,000 per month. Patrick is single, claims one exemption, and
Patrick Von Radesky, an engineer with Century Power and Light, earns a gross income of $6,000 per month. Patrick is single, claims one exemption, and uses the standard deduction. Throughout last year, his company withheld $850 each month from his paycheck for federal income tax. Today is January 4. As Patrick's accountant, you just informed him that although his tax return is due at the IRS by April 15, 90% of the income tax due for last year must be paid by January 15; otherwise, a penalty will be imposed. a.)calculate the amount of tax patrick owes for the year b.)did his company withhold enough from each paycheck to cover the 90%requirement c.)how much should patrick send to the IRS by January 15 so that he will not be penalized d.) if patrick waits until april 15 to send the balance of his taxes to the IRS, how much will be penalized if the penalty is 18% per year, or 1.5% per month, on the shortfall up to 90%\? (hint: use the simple I=PRT with exact interest) e.) if patrick gets a 10% raise, all other factors being the same, how much should he tell his payroll department to withhold from each month's paycheck so that 90% of the tax due will be deducted
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