Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your client reported salary income of $300,000 for 2020. He gave $100,000 to a non-profit organization and claimed a charitable contribution deduction of $100,000.
Your client reported salary income of $300,000 for 2020. He gave $100,000 to a non-profit organization and claimed a charitable contribution deduction of $100,000. The tax return showed income tax before credits of $44,000. The IRS determined that the non-profit organization is not a qualified charity, and a contribution to that organization is not deductible. The IRS proposes to disallow the charity deduction, which causes the income tax before credits to be $77,000 (not $44,000). The IRS proposed a deficiency of $33,000, and an accuracy related penalty. How much penalty will the IRS propose to assess on the taxpayer under section 6662? $20,000 $6,600 $6,000 $3,300
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