Compute the amount that the lears owe the federal government

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Mr. and Mrs. Lear filed their 2013 Form 1040 on April 1, 2014. On November 11, 2015, they received a notice of deficiency in which the IRS assessed $19,044 of additional 2013 income tax. Compute the amount that the Lears owe the federal government assuming:

a. The federal annual interest rate throughout the 18-month period between April 15, 2014, and the assessment date was 3 percent per annum. Ignore the effect of interest compounding.

b. The IRS agent who audited the return imposed a negligence penalty on the entire deficiency.

c. The IRS agent who audited the return imposed a civil fraud penalty on the entire deficiency.

Reference no: EM13887446

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