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Mr. Zeta Shah and Mrs Xetai Shah had import and export business in Houston. In 2012 one of their customer paid $400,000 and money was deposited directly in India. Shahs forgot to report $400,000 income on their 2012 tax return. Over the years whenever they went to India, they used that money for their pleasure. Assume interest rate of 4% and withdrew 50,000 each year to pay for their trips and shopping. They filed their income tax returns from 2012 to 2014 and reported taxable income of 95,000, and 105,000. They are married and live in Memorial. Their house is worth $1,500,000 and dive fancy cars.
1. Letter to client with the same format of the Penalty Abatement Letter. 2. Search “Facts” needed to defend your case. 3. Certification statement needs to be submitted with form
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