Compute the Failure to Pay and Failure to File Penalties

question 95

Essay

Compute the failure to pay and failure to file penalties for John, who filed his 2012 income tax return on December 14, 2013, paying the $10,000 amount due. On April 1, 2013, 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, 2013. John's failure to comply with the tax laws was not fraudulent.

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Definitions:

International Flow of Labor

The movement of workers across borders from one country to another, mainly driven by demand for labor, economic disparities, and globalization.

Worldwide Production Efficiency

Achieved when goods and services are produced at the lowest possible cost globally, maximizing the use of resources across nations.

Wage Rates

The standard amount of pay given for work performed, often expressed on an hourly, daily, or piecework basis.

Negative Self-selection

A scenario where individuals with less favorable characteristics are more likely to choose a particular option or action.