On August 13 of the Following Year, Joy Files Her

question 54

Essay

On August 13 of the following year, Joy files her current calendar-year tax return and pays the amount due without having requested an extension. The tax shown on her return is $25,000. Her current-year withholding tax is $15,000. Joy pays no estimated taxes and does not claim any tax credits on her current-year return. Calculate the penalties that the IRS is likely to assess. Ignore the penalty for underpayment of estimated taxes. Assume she did not commit fraud.

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Definitions:

Wagner Act

U.S. legislation passed in 1935 that established the legal right for workers to join unions and engage in collective bargaining.

Multiple Unions

The presence of more than one labor union within a single workplace or industry, each representing different groups of workers.

Right-to-Work Law

Legislation that prohibits agreements between labor unions and employers that make union membership or payment of union dues a condition of employment, either before or after hiring.

Union Representation

The act of acting on behalf of union members in negotiations with employers, usually regarding work conditions, wages, and other employment issues.