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:

Erie Canal

A historically significant man-made waterway in New York State, opened in 1825, which connected the Great Lakes with the Atlantic Ocean, facilitating trade and migration.

Steel Plow

An agricultural implement invented by John Deere, making it easier to till the tough prairie soil of the United States.

Factory System

A method of manufacturing using machinery and division of labor, characteristic of the Industrial Revolution, and significantly evolved from previous methods of manual and home-based production.

Power-Driven Machinery

Machines that operate using an external source of power, such as electricity, steam, or fuel, allowing for more efficient production processes in various industries.