Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her...

Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $235 for this service. Over a period of 10 years, how much does Wendy gain from preparing her own tax return? Assume she can earn 4 percent on her savings. Round FVA factor to 3 decimal places and final answer to 2 decimal places.

Expert Solution

Savings per year		235
× FVAF		12.006
Savings		2821.41

Answer is

2821.41

Her savings is $2,821.41 in ten years

jeff jeffy answered 2 years ago

Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her...

Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $170 for this service. Over a period of 18 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 3 percent on her savings. Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D] (Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your...

Which of the following persons is subject to tax return preparer penalties for the return(s)...

Which of the following persons is subject to tax return preparer penalties for the return(s) mentioned? a. Meredith is the director of Federal taxes for a C corporation, and prepares her mother’s return for $50. b. Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program. c. Abbie prepares her mother’s tax returns for free. A CPA, Abbie would charge a client $750 for completing a similar return. d. ...

26. Which of the following persons is subject to tax return preparer penalties for the return(s)...

26. Which of the following persons is subject to tax return preparer penalties for the return(s) mentioned? a. Meredith is the director of Federal taxes for a C corporation, and prepares her mother’s return for $50. b. Sammy is a volunteer who prepares returns at the retirement home under the IRS Tax Counseling for the Elderly program. c. Abbie prepares her mother’s tax returns for free. A CPA, Abbie would charge a client $750 for completing a similar return. d. ...

When a member of the AICPA prepares a taxpayer's federal income tax return, the member has...

When a member of the AICPA prepares a taxpayer's federal income tax return, the member has the responsibility to A. be an advocate for the entity's position B. Verify the data to be used in preparing the return. C. Take a position of independent neutrality D. Argue the position of the Internal Revenue Service The correct answer is A THIS QUESTION ILLUSTRATES THAT THE ROLE OF A TAX ACCOUNTANT IS VERY DIFFERENT THAN THAT OF AN INDEPENDENT AUDITOR. DISCUSS HOW...

Lance prepares tax returns for his clients. He prepared his brother’s income tax return for $1,000...

Lance prepares tax returns for his clients. He prepared his brother’s income tax return for $1,000 and he willfully neglects to include $30,000 of income since his brother did not receive a Form 1099 for his consulting work. Lance is aware that his brother earned the $30,000 but fails to report it since he does not believe the IRS will catch the understatement of income. The additional tax on this $30,000 of income would have been $7,500. What is the...

Elena filed her Form 1040, U.S. Individual Income Tax Return, for the 2006 taxable year on...

Elena filed her Form 1040, U.S. Individual Income Tax Return, for the 2006 taxable year on April 15, 2007. On May 15, 2007, the IRS assessed the $10,000 of tax reported by Elena on her 2006 Form 1040. Elena did not make any mistakes on her 2006 Form 1040; however, Elena did not pay the $10,000 tax liability reported on the Form 1040. On January 2, 2010, the IRS filed a Notice of Federal tax Lien against Elena, which attached...

Sarah is single. She files her tax return as Single. Her 2020 income from wages is...

Sarah is single. She files her tax return as Single. Her 2020 income from wages is $450,400. She has “net long-term capital gains” of $100,000. Total 2020 gross income is $550,400. Sarah is under 65 years of age and does not itemize her deductions. What is Sarah’s total federal income tax? A) $112,829.75 B) $128,095.50. C) $147,922.50 D) $149,701 please show work thank you

Isabella files her income tax return 180 days after the due date of the return without...

Isabella files her income tax return 180 days after the due date of the return without obtaining an extension from the IRS. Along with the return, she remits a check for $90,000, which is the balance of the tax she owes. Note: Assume 30 days in a month. Disregarding the interest element, enter Isabella's failure to file penalty and and failure to pay penalty. Failure to pay $ Failure to file $

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax...

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,900 for Year 2?

In the 2019 tax year, Michelle paid the following amounts relating to her 2017 tax return:...

In the 2019 tax year, Michelle paid the following amounts relating to her 2017 tax return: Tax deficiency $5,000 Negligence penalty 1,000 Interest 500 Underpayment of the estimated tax penalty 350 Which of the above items may be deducted on Michelle’s 2019 individual income tax return? Explain !!!response should be 200 words or more!!!

Question