The IRS Audits Kiara's Current-Year Individual Return and Determines That

question 26

Essay

The IRS audits Kiara's current-year individual return and determines that, among other errors, she negligently did not report dividend income of $10,000. The deficiency with respect to the dividends is $2,800. The IRS argues for an additional $12,000 deficiency for various other errors that do not involve negligence. What is Kiara's negligence penalty for the $14,800 in deficiencies?

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Definitions:

Progressive Era

A period in the United States from the 1890s to the 1920s characterized by social activism and political reform aimed at addressing issues stemming from industrialization and urbanization.

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco in a rolled paper.

16 States

Often refers to the number of states in a particular union or federation at a given time; the specific grouping can depend on historical context.

Southern Lynching

Extrajudicial killings, predominantly of African Americans, by hanging, historically prevalent in the Southern United States.