C11-Chp-17-2-HW-Sol-Tax-Practice-etc

C11-Chp-17-2-HW-Sol-Tax-Practice-etc - 4/15/07 Add 3 years...

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9c3d3e018d5775bfa87907d723653ddb9caef055.xls Page 1 of 1 Cite No Ans Answers to sample test questions 6651 1 C Compute late filing penalty Penalty for failure to file is 5% per month, up to 5 months. Penalty for failue to pay is .5% per month. (Max. 25%) Failure to file penalty is reduced by failure to pay penalty (.5%) In effect, total penalty is 5% per month, for first few months. 301.6651 b Amount Underpaid $10,000 April 15 Rate per month the payment is late 5.0% May 15 One month Penalty per month $500.00 June 5 Paid Number of months 2 June 15 Two months Late payment penalty $1,000.00 Corporate Tax Textbook page 17-6. 6501 a 2 C When statute of limitations expires. 6501 b Jackson Corporation 7502 a Date the tax return was mailed 3/11/10 Date the tax return was postmarked 3/11/10 Date tax return received by IRS 3/18/10 Normal filing deadline 3/15/10 Timely mailing is timely filing. Statute begins on later of filing or due date Return filed early is treated as being filed on deadline. 6501 a 3 D Susie Quick 6501 b Date the tax return was mailed 2/15/07 Normal filing deadline
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Unformatted text preview: 4/15/07 Add 3 years 4/15/10 6501 e 4 B Fred Wrong Date the tax return was mailed 3/15/08 Normal filing deadline 4/15/08 Add 3 years 4/15/11 Six year limit applies to omission of income. This question involves overstatment of deductions. (Honest Mistake). 6501 e 5 D Keen Date the tax return was mailed 3/15/08 Normal filing deadline 4/15/08 Add 6 years 4/15/14 Taxpayer omitted 25% or more of income. Six year limit applies to substantial (25%) omission of income. Note special definition of gross income (actually gross revenue). 6501 a 6 B Betty 6501 e Date the tax return was mailed 3/15/08 Normal filing deadline 4/15/08 Add 3 years 4/15/11 Omission of income was less than 25%. 601.105 7 A IRS Audits 601.105 8 B Procedure after audit - Letter Received 6212 9 B Statutory Notice of Deficiency - 90-day letter 6213 601.105 10 B Filing protest letter after receipt of notice of proposed deficiency. 11 A Statements on Standards for Tax Services - AICPA...
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