Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

FACTS

Lacy Corporation was incorporated in the year of 1983 by Dave Jones, who has served as a member and officer of the board of the directors.  Mary Smith has served as secretary-treasurer of company as a convenience to friend Dave.  Mary acted as part-time bookkeeper but didn’t run the everyday business affairs and paid only the bills she was instructed to pay.  Mary was an authorized signatory for corporate bank accounts however had no final control over the expenditures.

Beginning from the last quarter of 2011, the company unsuccessful to pay all of the taxes withheld from employees and the employer’s share of FICA taxes to the IRS.  Despite this delinquency, the corporation continued to pay other creditors including its employees, in preference to the IRS.

In January 2012, Lacy Corporation entered in an instalment agreement with the IRS to keep current on its withholding taxes and to create payments on the past due balance till paid in full.  The company consequently defaulted on the agreement in April 2012.  Throughout this period, Dave Jones was serving as chief financial officer and was a member of the board of directors.  He had the authority to make policy decisions.  He was accountable for negotiating the instalment agreement with the IRS and the decision to default on the agreement.

ISSUE

problem1. Who is liable for the penalty for non-payment of the payroll tax withholdings?

problem2. describe your answer in detail 1-2 pages, with research support provided by the following authority.  A link is provided for IRC section 6672 and the Carlson case file is provided as a link on D2L.

AUTHORITY

IRC Sec. 6672

http://www.law.cornell.edu/uscode/text/26/6672

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M9895

Have any Question? 


Related Questions in Taxation

Truefalse on tax1 an s corporation cannot incur a tax

TRUE/FALSE ON TAX 1. An S corporation cannot incur a tax liability at the corporation level. a. True b. False 2. S corporation status allows shareholders to realize tax benefits from corporate losses immediately (assumin ...

Consolidated tax return with intercompany

Consolidated Tax Return with Intercompany Transactions ParentCo and SubCo are calendar year corporations that keep their respective books on the accrual basis. The companies have taxable income of $200,000 and $250,000, ...

Tax memo multi state and international taxyou are the tax

Tax Memo: Multi state and international tax You are the Tax Director in a FORTUNE 500 company. There is a new CFO and he comes to your office and asks the following: "I understand that there are ways to shift income betw ...

Assignmentsuppose you are a cpa and you have a corporate

Assignment Suppose you are a CPA, and you have a corporate client that has been operating for several years. The company is considering expansion through reorganizations. The company currently has two subsidiaries acquir ...

Tax research paperthe topic is listed below try to

TAX RESEARCH PAPER The topic is listed below. Try to incorporate any applicable Code, Regulations, Revenue Rulings, and court decisions. The paper is to include a Title Page and a Bibliography at end of the paper. The bo ...

Assignmentncc corporation is considering building a new

Assignment NCC Corporation is considering building a new facility in Texas. To raise money for the capital projects, the corporation plans the following capital structure: 30% of money will come from issuing bonds, and 7 ...

Assignmenti carol is a single mother who owns a wholesale

Assignment I. Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do ...

Prepare a 2015 form 1120 - us corporation income tax return

Prepare a 2015 Form 1120 - U.S. Corporation Income Tax Return - for Freddy Falcon Inc. based on the information provided: Prepare the return as if you were preparing it for an actual client. All necessary forms and sched ...

From circular 230 compare and contrast the ability to

From Circular 230 compare and contrast the ability to practice before IRS between a CPA and an AFSP tax preparer during 2015

Discussion questions1 explain congress intent for enacting

DISCUSSION QUESTIONS 1. Explain Congress' intent for enacting the AMT. 2. Define the following terms relating to the AMT: a. Tax preference item b. AMT adjustment item c. Adjusted current earnings d. Alternative minimum ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro