On July 25 of the Following Year, Joy Files Her

question 94

Essay

On July 25 of the following year, Joy files her current calendar-year tax return without having requested an extension. On October 8, she pays the amount due. The tax shown on her return is $25,000. Her current-year withholding tax is $20,000. Joy pays no estimated taxes and does not claim any tax credits on her current-year return. Assume she did not commit fraud. Will Joy owe interest, and if so, on what amount and for how many days?

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Definitions:

High Reward

A significant incentive or outcome that encourages the continuation or repetition of a behavior.

Positive Contrast Effect

The phenomenon where the perceived value or intensity of a stimulus is increased when juxtaposed with a less attractive stimulus.

Hyperalgesia

An increased sensitivity to a painful event.

Analgesia

A reduced sensitivity to painful events.