Maria Did Not Pay Her Federal Income Tax on Time

question 103

Essay

Maria did not pay her Federal income tax on time. When she eventually filed the return, she reported a balance due.
Compute Maria's failure to file penalty in each of the following cases. Disregard any failure to pay penalty.
a. Three months late, $500 additional tax due.
b. Four months late, $2,000 additional tax due.
c. Ten months late, $10,000 additional tax due.
d. Four months late due to fraud by Maria, $10,000 additional tax due.
e. Fifteen months late due to fraud by Maria, $10,000 additional tax due.

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