William, a Tax-Payer, Timely Mailed His Tax Return

question 14

Multiple Choice

William, a tax-payer, timely mailed his tax return. However, the same was returned for insufficient postage. IRS imposed a penalty. Can William claim waiver of penalty?

• A) Yes, William can claim waiver of penalty since it is his first tax return.
• B) Yes, William can claim waiver since the failure to file tax return is due to a reasonable clause.
• C) No, William can not claim waiver since it is a case of willful neglect.
• D) No, William cannot claim waiver of penalty as he is a delinquent tax-payer.

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Definitions:

Customer Service Department

A segment of a business dedicated to assisting customers with their questions, concerns, and issues regarding products or services.

Time-Driven Activity-Based Costing

A costing methodology that assigns cost based on the time resources are expected to use, providing a more accurate representation of resource usage.

Capacity Analysis

is the assessment of a company's ability to produce goods or services at an optimal cost and efficiency, considering its resources.

Customer Support Department

A division within a company dedicated to assisting customers with their questions, issues, and needs concerning products or services.