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

Accounting taxa truefalse1 a distribution from a

Accounting Tax A.) True/False 1 A distribution from a corporation will be taxable to the recipient shareholders only to the extent of the corporation's E & P. 2 All distributions that are not dividends are a return of ca ...

Taxplease fully answer the following1 what does it mean

Tax Please fully answer the following: 1. What does it mean when we say that there is a unified gift and estate tax in the US? 2. What is the difference between the estate and gift tax and the income taxation of estates ...

1 the weighted-average cost of capital is the return the

1. The weighted-average cost of capital is the return the company needs to earn after tax in order to satisfy all its security holders. True False Question 2. Why is debt financing said to include a tax shield for the co ...

Corporate tax return projectusing the following information

Corporate Tax Return Project Using the following information, prepare a corporate tax return for 2015. You can download the tax forms from the IRS website (www.irs.gov). In addition to the basic Form 1120 (all 5 pages), ...

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 ...

New taxesdecisions related to taxes have a far-reaching

New Taxes Decisions related to taxes have a far-reaching impact on all U.S. citizens. Therefore, it is important to weigh the pros and cons of such decisions and ensure that they will be beneficial to the majority of cit ...

Discussion forumnote the video has closed captioning to

DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. We are going to examine substitute goods, h ...

Assignemnt corporation tax returnrequiredbull using the

Assignemnt: CORPORATION TAX RETURN Required: • Using the information provided below, complete Salt Source Inc.'s (SSI) 2010 Form 1120S. Also complete Kim Bentley's Schedule K-1. • Form 4562 for depreciation is not requir ...

Write a response to these two posts only has to be about

Write a response to these two posts. Only has to be about 150 words each: Post1: A) As the CPA preparing the tax return in Situation A, I would have to rely on the information received by Tom. Unless I have prepared tax ...

Tax projectour tax project has changed slightly due to the

TAX PROJECT: Our tax project has changed slightly due to the Presidential Election Year. Your project is to prepare a document, no longer than five pages, reviewing and addressing the following: - Tax policy of Democrati ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen