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?

---

Definitions:

TODAY() Function

A programming and spreadsheet function that returns the current date, widely used in data analysis, time-sensitive calculations, and reporting.

MROUND

A function in Excel that rounds a number to the nearest multiple of a specified value.

Nearest

The closest in distance, time, or relationship among options or elements being considered.

MINUTE

A unit of time equal to sixty seconds or one-sixtieth of an hour, also a function in many applications to extract the minute portion from a time value.