Mr Bennett Is a Professional Tax Return Preparer

question 43

Essay

Mr Bennett is a professional tax return preparer. Three years ago, he prepared the Form 1120 for Philly Inc. His fee for the preparation was $15,000. Upon audit of the return, the IRS disallowed a $100,000 deduction, which increased the corporation's tax by $35,000. Compute Mr Bennett's preparer penalty if the IRS concludes that:
a. Mr Bennett had no reasonable legal basis for claiming the deduction and was not acting in good faith by doing so.
b. Mr Bennett intentionally disregarded the tax law by claiming the deduction in a willful attempt to understate Philly's tax.
c. How would your answers to a. and b. change if Mr Bennett's preparation fee was only $6,000?

Understand the distinct brain activities associated with different emotions.

Acknowledge the innate nature of facial expressions and the possibility of controlling them.

Recognize the vast range of human facial expressions.

Understand the continuity of emotional experiences across species.

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Definitions:

Aquifer

A permeable body of saturated material through which groundwater can flow and which yields significant volumes of water to wells and springs.

Permeability

The ability of a material, such as rock or soil, to allow fluids to pass through it, often measured in terms of the ease with which water can flow.

Porosity

The measure of a rock's ability to hold water, determined by the volume of voids or spaces within the rock.

Artesian Aquifer

A confined aquifer containing groundwater under positive pressure, causing water to rise above the surrounding water table when tapped.