Compute the Failure to Pay and Failure to File Penalties

question 119

Essay

Compute the failure to pay and failure to file penalties for John, who filed his 2018 income tax return on December
14, 2019, paying the $10,000 amount due. On April 1, 2019, John submitted a six-month extension of time in which to file his return; he paid no tax with the extension request. He has no reasonable cause for failing to file his return by October 15, or for failing to pay the tax that was due on April 15, 2019. John's failure to comply with the tax laws was not fraudulent.

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Definitions:

Congress

The legislature of the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making federal laws.

Separation Of Powers

Feature of the U.S. Constitution, sometimes called “checks and balances,” in which power is divided between executive, legislative, and judicial branches of the national government so that no one can dominate the other two and endanger citizens’ liberties.

United States Constitution

The supreme law of the United States of America, originally comprising seven articles, that outlines the national frame of government.

Government

The organization, or group of organizations, in a society that has the authority to make and enforce laws, policies, and decisions for its citizens.