In 2007, Paul 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 2007 income tax return until November 30, 2008 (due date was April 15, 2008) and no extensions of time to file return were filed. Below are amounts from his 2007 return:
Taxable Income $140,000
Total tax liability on taxable income $ 33,311
Total federal tax withheld from his salary $ 27,290
Paul sent a check with his return to the IRS for the balance due of $6,021. He is relieved that he has completed his filing requirement for 2007 and has met his financial obligation to the government for 2007. Has Paul met all of his financial obligations to the IRS for 2007? If not, what additional amounts will Paul be liable to pay to the IRS?
What are the amounts?
In 2010 Paul who is single has a comfortable etc..
To determine whether Paul has met all of his financial obligations to the IRS for 2007, we need to consider a few factors.
First, let's calculate Paul's total tax liability for 2007. The given information states that his total tax liability on taxable income was $33,311.
Next, we need to determine the total federal tax withheld from Paul's salary. According to the information provided, $27,290 was withheld from his salary.
To find out if Paul has met his financial obligations, we need to compare his total tax liability with the amount withheld from his salary.
Subtracting the federal tax withheld ($27,290) from the total tax liability ($33,311), we get:
$33,311 - $27,290 = $6,021
So the remaining balance after deducting the federal tax withheld is $6,021.
Paul sent a check with his return for this balance, which implies that he paid the amount he owed to the IRS. Therefore, Paul has indeed met his financial obligation to the government for 2007.
Hence, Paul has met all of his financial obligations to the IRS for 2007, and no additional amounts will be required to be paid.