Compute the Failure to Pay and Failure to File Penalties

question 116

Essay

Compute the failure to pay and failure to file penalties for John, who filed his 2011 income tax return on December 14, 2012, paying the $10,000 amount due.On April 1, 2012, John submitted a six-month extension of time in which to file his return; 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 15, 2012.John's failure to comply with the tax laws was not fraudulent.

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Definitions:

Homeless

People lacking stable and permanent housing or adequate living conditions.

Absolute Homelessness

Situation of individuals who live either in emergency shelters or on the street.

Concealed Homelessness

The situation of individuals who do not have a home of their own and stay with friends, family, or in other temporary arrangements, often not visible in homeless statistics.

Relative Homelessness

State of those who have housing, but who live in substandard or undesirable shelter and/or who may be at risk of losing their homes.