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:

Colloid Osmotic Pressure

The pressure exerted by plasma proteins on the capillary walls, which helps maintain the balance of fluid between the circulatory system and tissues.

Osmoreceptors

Specialized sensory neurons that detect changes in osmotic pressure and play a critical role in maintaining osmotic balance within the body.

Oncotic Pressure

The part of blood osmotic pressure exerted by proteins in the plasma, crucial for maintaining fluid balance across capillary walls.