Question

In 2017​, Andrew​, who is​ single, has a comfortable salary from his job as well as income from his investment portfolio.​ However, he is habitually late in filing his federal income tax return. He did not file his 2017 income tax return until December 10, 2018 (due date was April 17​, 2018​) and no extensions of time to file the return were filed. Below are amounts from his 2017return:

Taxable income

$140,000

Total tax liability on taxable income

32,182

Total federal tax withheld from his salary

25,682

Andrew sent a check with his return to the IRS for the balance due of

$ 6,500. He is relieved that he has completed his filing requirement for

2017 and has met his financial obligation to the government for

2017.

Has Andrew met all of his financial obligations to the IRS for 2017​?

If​ not, what additional amounts will Andrew be liable to pay to the​ IRS?

First select the label for any applicable financial obligations that Andrew will​ incur, then enter the applicable amounts and calculate the total. ​(Assume a 365​-day year. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest cent. If a box is not used in the table leave the box​ empty; do not select a label or enter a​ zero.)

Answer 1

No, Andrew has not met all his financial obligation.

As we know that , he filed return late and also not apply for extension hence he is liable to pay penalty for late payment of tax payable .

If a person file his return late by more than 60 days then he is liable to pay penalty upto 100% of unpaid taxes or $205 whichever is smaller and if failed to pah such penalty then liable for failure to pay penalty 0.5% of tax due per month (or part of the month )maximum upto 25% of tax due.

Hence additional obligation are as follows ;-

1.failure to file - penalty = $6500 or $205 whichever is smaller i.e.$205

2.failure to pay penalty = 0.5%*6500*8 months ( from 17 April to 10 december )

=$260

Total financial obligation = $205+$260 =$465 .