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Accounting Problem Final 1

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Accounting
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University of Rhode Island
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Surname 1 Name: Tutor: Course: Date: Accounting Problems Question 1 The two leading penalties that taxpayers anticipate once they infringe tax laws include failure-to-pay and failure-to-file. The failure to five presents a 5 percent penalty of the entire amount that was meant to be paid. The 5 percent subtracted every month up to 25 percent maximum. If it takes over sixty days to file the tax, the fine grows to be either $135 or the overall tax (whichever is lesser). The fine is decreased by the failure-to-pay tax. Failure-to-pay is simple to fail to given tax as demonstrated on the return. The fine is 0.05 percent of the tax displayed every month up to 25 percent. Other penalties comprise the accuracy-linked penalty (30 percent of the underpaid tax) and fraud fines (75 percent of the underpaid tax as a deliberate effort to evade tax). (Textbook, p. 625) Surname 2 Question 2 The payroll taxes created comprise the supplementary Medicare tax that kicks in at 0.9 percent tax rate incase their wages surpassed the threshold recorded by the IRS for the filing standing. Self-employed tax is another tax created which refers to the tax given by persons depending on the net incomes. Generally, it is 15.3 percent or twice the rate of the normal worker given that the self-employed are both the employee and employer. Lastly, the Federal unemployment tax which is tax charged on workers that give over $1500 in salaries within a quarter OR hire one individual for 20 or more diverse weeks ...
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