Question

Elijah did not request a tax-filing extension, and he waited until June 21,2017, to file his former 1040 for tax year 2016. His balance due is $88.Elijah is subject to failure -to -file and failure -to -pay penalties totaling

Answer 1

Solution:

1) The due date for documenting structure 1040 is April 18,2017. In the event that you can't record or pay, you can ask for assessment documenting augmentation.

2) In the given case, the assessment documenting expansion was not taken and the shape was recorded on June 21, 2017.

3) The punishment for recording late is 5% of the unpaid expenses for every month or part of the month that a government form is late. That punishment begins gathering from the day after the duty documenting due date and won't surpass 25% of your unpaid expenses.

4) If you don't settle your regulatory expenses by the assessment due date, you regularly will confront an inability to pay punishment of 1/2 of 1% of your unpaid duties. That punishment applies for every month or part of the month after the due date.

5) If both the 5% inability to document punishment and 1/2% inability to pay punishments apply in multi month, the most extreme punishment that you will pay for both is 5%.

6) Since, in the given case, both the punishments are applying for the 3 months time span (April 19, 2017 to June 21,2017), the most extreme punishment that must be paid will be 5% of the funds owed i.e $88 = 5% of $88 i.e 13.2 adjusted off to 13$.

7) The measure of punishment to be paid is $13.