Compute the Failure to Pay and Failure to File Penalties

question 74

Essay

Compute the failure to pay and failure to file penalties for John,who filed his 2007 income tax return on December 6,2008,paying the $15,000 amount due.On April 1,2008,John had received a six-month extension of time in which to file his return,but he paid no tax with the extension request.He has no reasonable cause for failing to file his return by October 15 or for failing to pay the tax that was due on April 17,2008.John's failure to comply with the tax laws was not fraudulent.

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Definitions:

Idle Capacity

Unused or unutilized production capacity within a business, often leading to inefficiency and increased costs.

Constrained Resource

A limited resource that restricts a company's ability to meet demand, such as limited machine time or labor hours.

Automated Factory

An automated factory utilizes advanced machinery and computer systems to perform tasks with minimal human intervention, increasing efficiency and production.

Porcelain Dip Bowl

A specific type of serving bowl made from porcelain, typically used for dipping sauces or small appetizers.