Tax penalties. Joey, single, owned and operated a marina and night club. He did not file his 2019 return until January 2021. Even when he filed his return, the amount of tax on the return ($22,500) was incorrect. John carelessly forgot to include $32,350 in income- from marina fees paid in cash. His tax should have been $29,600. Determine the amount of tax penalties Joey owes.

Tax penalties. Joey, single, owned and operated a marina and night club. He did not file his 2019 return until January 2021. Even when he filed his return, the amount of tax on the return ($22,500) was incorrect. John carelessly forgot to include $32,350 in income- from marina fees paid in cash. His tax should have been $29,600. Determine the amount of tax penalties Joey owes.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 21P

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Lorna Hall's real estate tax of $2,010.88 was due on December 14, 2022. Lorna lost her job and could not pay her tax bill until February 27, 2023. The penalty for late payment is 6 1/2% ordinary interest.
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