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Compute the Failure to Pay and Failure to File Penalties

question 119

Essay

Compute the failure to pay and failure to file penalties for John, who filed his 2018 income tax return on December
14, 2019, paying the $10,000 amount due. On April 1, 2019, 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, 2019. John's failure to comply with the tax laws was not fraudulent.


Definitions:

Locational Transition Fit

A type of fit defined by tolerances that allows for a limited amount of either interference or clearance between assembled parts.

Clearance

The intentional space or gap between two mating parts to ensure there is no unwanted friction or binding during operation.

Interference Fit

A method of fitting two parts together using a dimension in which the size of the hole is smaller than the size of the shaft to be inserted, creating a high-pressure seal.

Locational Fits

Types of fits defined by standard tolerances that determine how tightly or loosely two parts will connect, particularly regarding their location accuracy.

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