QUESTION 11Jack files his own taxes and wants to keep his tax liability real low as his income is only S25,000 annually. To overstate expenses so that his deductions arehigher and his tax liability is lower, he falsely claims to have donated S2000 to a local animal shelter on his tax return. While this donation does lower his taxliablity slightly it ialsoO is clearly tax evasionexposes Jack to an audit by the IRSO This is clearly tax evasion and will also trigger an audit by the IRSO None of these are true

The question is related to Taxation. The Tax Evasion is a iilegal is an illegal activity in which a…

Answered: QUESTION 11 Jack files his own taxes…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 4RP

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LO.5 Last year Alans accountant informed him that he could not claim any of his passive activity losses on his income tax return because of his lack of material participation. To circumvent the tax problem this year, Alan tells his spouse that she may have to put in some time at the various businesses. Identify the tax issues that Alan faces.
LO.5 During 2019, Greg Cruz (1401 Orangedale Road, Troy, MI 48084) works for Maple Corporation and Gray Company. He earns 90,000 at Maple Corporation, where he is a full-time employee. Greg also works part-time for Gray Company for wages of 50,000. a. Did Greg experience an overwithholing of FICA taxes? Write a letter to Greg and a memo for the tax files in which you explain your conclusion. b. Did Maple Corporation and Gray Company overpay the employers portion of FICA? Explain.
(LO.4 Federal Taxation) In each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under section 222 (qualified tuition and related expenses): 1) Lily is single and is employed as an architect. During 2020, she spends $4,100 in tuition to attend law school at night. Her modified AGI (MAGI) is $64,000. 2) Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($2,100 for tuition and $300 for books) to take a course in herbal supplements at a local university. His MAGI is $81,000. 3) Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies pursuing a bachelor’s degree in accounting. Her MAGI is $40,000 on the separate return she files. 4)John spends $6,500 of his savings on tuition to attend Carmine State College, John is claimed as a dependent by his parents.
Sheryl's AGI $250,600. Her current tax liability is $52,128. Last year her tax liability was 48,782. She will not owe underpayment penalties if her total estimated tax payment are at least which of the following (rounded) amounts? Assume she made the required amount?
48. Nicanor is a civil engineer. His reported total gross receipts in 2020 amounted to Php 4,250,000.00 while the cost of service and operating expenses were Php 2,150,000.00 and Php 1,000,000.00, respectively. Since he does not keep receipts of his purchases, his Accountant advised to avail of the 40% OSD in his 1st Quarter ITR which he did. Total tax withheld (expanded withholding tax) by his clients is equivalent to 10% from which he received tax certificates (BIR Form 2307s). During filing annual ITR, without the getting professional advice, he filed his own return and opted 8% preferential taxation. What is Nicanor’s CORRECT income tax payable in 2020? Disregard payment in his original return filed Group of answer choices c. 666,000 a. Overpayment of 205,000 d. 241,000 b. 320,000
Denmark Torralba did not file his income tax return for the calendar year 2022 which was duefor filing on April 15, 2023. He was notified by the BIR of his failure to file the tax return, forwhich reason, he filed his tax return and paid the tax only after the said notice on July 15, 2024. Excluding compromise penalties, the tax due per return is P100,000. How much is the total amount due?
Morris a single taxpayer earns wages of $350,000. In tax year 2021 he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ( 270,000 dollar loss). Boris has enough tax basis to cover the loss as and is considered at risk for the loss amount and he materially participates in the activity. What is the amount of excess business loss he will carry forward $10,000 $80,000 $260,000 $270,000
1. Gomez maintains a law firm and registered as VAT taxpayer. For a particular client, the amount of professional fee imposed by Gomez is P300,000. Compute the business tax on this particular transaction. The taxable year is 2021. A. P3,000 percentage tax B. P9,000 percentage tax C. P36,000 output VAT D. zero 2. Ana invested P100,000 in domestic stocks. She sold them at a later date for P150,000 through the Philippine Stock Exchange. Ana is not a dealer of securities. Compute the business tax. A. zero B. P1,500 C. P900

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