PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Question
Chapter 18, Problem 15AP
a.
To determine
Determine Ms. H’s penalty for negligence in preparing tax return.
b.
To determine
Determine Ms. H’s penalty for cheating the government through underpayment of tax.
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Students have asked these similar questions
Juan inquired from the BIR whether or not he will be covered with the new tax law. The BIR issued an administrative ruling that his activities are not covered by the new tax law. As a result, Juan did not pay his tax for several years based on the said BIR ruling. Currently, the BIR Commissioner found out that the previous ruling was erroneous and reversed the same with a new BIR ruling. The BIR then issued tax assessment against Juan for purposes of collecting back taxes.Is the tax assessment against Juan correct?
A. Yes, because the previous BIR ruling was corrected and the activities of Juan should have been taxable.
B. Yes, because the ruling of the BIR Commissioner must be final.
C. No, Juan should be exempted from paying taxes under the old and new law.
D. No, because reversal of BIR ruling shall not be retroactive in application especially if the ruling is prejudicial to the taxpayer
Andrea's 2020 return was audited by the IRS. Andrea failed to report taxable interest income on her return, which resulted in an assessment of $8,000 in tax. Assuming her actions were intentional and fraudulent, what is her accuracy penalty?
During a recent IRS audit, the revenue agent decided that the Parker family used their closely held corporation, Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Falco’s taxable income was $1,010,000, it paid no dividends, and it had no business need to retain income. Falco’s marginal tax rate in prior years was 34 percent.
Required:
Compute Falco’s accumulated earnings tax assuming that it had accumulated $5 million after-tax income in prior years.
Compute Falco’s accumulated earnings tax assuming that it had accumulated $141,000 after-tax income in prior years.
Chapter 18 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 18 - Prob. 1QPDCh. 18 - Prob. 2QPDCh. 18 - Prob. 3QPDCh. 18 - Prob. 4QPDCh. 18 - Prob. 5QPDCh. 18 - Prob. 6QPDCh. 18 - Prob. 7QPDCh. 18 - Prob. 8QPDCh. 18 - Prob. 9QPDCh. 18 - Prob. 10QPD
Ch. 18 - Prob. 11QPDCh. 18 - Prob. 12QPDCh. 18 - Prob. 13QPDCh. 18 - Prob. 14QPDCh. 18 - Prob. 1APCh. 18 - Prob. 2APCh. 18 - Prob. 3APCh. 18 - Prob. 4APCh. 18 - Prob. 5APCh. 18 - Prob. 6APCh. 18 - Prob. 7APCh. 18 - Prob. 8APCh. 18 - Prob. 9APCh. 18 - Prob. 10APCh. 18 - Prob. 11APCh. 18 - Prob. 12APCh. 18 - A revenue agent determined that Ms. Owen underpaid...Ch. 18 - Prob. 14APCh. 18 - Prob. 15APCh. 18 - Prob. 16APCh. 18 - Prob. 17APCh. 18 - Prob. 18APCh. 18 - Prob. 19APCh. 18 - Prob. 20APCh. 18 - Prob. 22APCh. 18 - Prob. 8IRPCh. 18 - Prob. 9IRPCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 1TPCCh. 18 - Prob. 2TPC
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