Case Study 45: Calculation of Penalties & Interest

alhofmeister (62)in #tax • 6 years ago (edited)

Index - https://steemit.com/tax/@alhofmeister/rqgmk-tax-blog-index

Introduction
After concluding my last series on back taxes, I felt unsatisfied with the projected tax savings. As a result, I've decided to do a second series on back taxes with a more extreme example. This article will cover the penalties & interest that the IRS would assess (maybe not penalties depending on the facts and circumstances of the case).

Problem
Taxpayer A did not file their tax returns for 2009, 2010, 2011, 2012, 2013, 2014, 2015, or 2016. In 2018, Taxpayer A decided to settle with the IRS before they received a notice. Note that these calculations assume that the taxpayer files on February 28, 2018.

Disclaimer
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.

#example #money #irs #back-taxes