The following questions pertain to Monica's responsibility with regard to the underreporting of income by...
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Accounting
The following questions pertain to Monica's responsibility with regard to the underreporting of income by Doug. Enter the amount in the associated cells. Enter all values as positive, whole numbers, with no decimal places. If a value is zero, enter a zero (0).
1. Assume that it is determined that the position taken on Doug's return did not have a reasonable basis and that Monica did not act in good faith and there was no reasonable cause for the understatement. However, her actions were not willful. She did not disclose that this position had been taken on the return. What will be the amount of Monica's penalty, if any?
123
2. Assume that it is determined that the position did not have a reasonable basis and Monica willfully attempted to understate the tax liability and recklessly disregarded tax rules. What will be the amount of Monica's penalty, if any?
123
3. Assume that it is determined that the position taken on Doug's return did have a reasonable basis and that Monica did act in good faith. Her actions were not willful and she appropriately disclosed the position on Doug's return. What will be the amount of Monica's penalty, if any?
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