On July 25 of the Following Year, Joy Files Her

question 53

Essay

On July 25 of the following year, Joy files her current calendar-year tax return. She had requested extensions as required. On October 8, she pays the amount due. The tax shown on her return is $22,000. Her current-year withholding tax is $21,000. 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:

Bulimia Nervosa

An eating disorder characterized by recurrent episodes of binge eating and subsequent purging; usually by induced vomiting and the use of laxatives.

Binge Eating

The consumption of large quantities of food in a short period of time, often accompanied by feelings of lack of control over eating.

Substance Use

The consumption of drugs or alcohol, where the manner or amount consumed may lead to harm or addiction.

Emerging Adulthood

A phase of life between adolescence and full-fledged adulthood, characterized by exploration and instability in love, work, and worldviews.