Ask Question
21 June, 08:54

State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations. The state tax plan outlined above assumes thatA) federal tax officials will not attempt to collect back taxes in the same mannerB) stiff fines are not the only way to collect past due corporate taxesC) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers areD) past due taxes cannot be collected without a reduction in penaltiesE) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals

+1
Answers (1)
  1. 21 June, 09:13
    0
    B) stiff fines are not the only way to collect past due corporate taxes

    Explanation:

    Collecting taxes is not an easy or inexpensive job. The IRS spends billions of dollars in order to collect taxes and the same applies to state taxing entities (at a smaller proportion).

    So if state tax official can find a way to collect past due taxes then it should always be a good idea. Everyone loves a discount and corporations probably love discounts more. If the reduction or elimination of fines will make corporations pay their state taxes, then it's a great idea.

    It's always better to collect $100 in taxes than to have $200 in past due taxes that aren't collected.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers