An Accuracy-Related Penalty Is Imposed for Underpayment of Taxes Due

question 5

Multiple Choice

An accuracy-related penalty is imposed for underpayment of taxes due to the taxpayer's negligence, according to §6662.T files his 2011 return on April 15, 2012, and two years later the IRS assesses an additional $6,000 of tax attributable to failure to report income.Not counting the interest on both the additional tax and the penalty, how much negligence penalty will T have to pay?

• A)$300
• B)$600
• C)$900
• D)$1,200
• E)$1,500

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Definitions:

George F. Kennan

An American diplomat and historian, recognized as the "father" of the containment policy, which aimed to prevent the spread of communism during the Cold War.

Soviet Union

A former federal socialist state in Eurasia, existing from 1922 to 1991, known for its role in the Cold War and its governance under the Communist Party.

Economic Turmoil

A state of severe instability and uncertainty in the economy, often characterized by significant financial loss and market volatility.

Postwar Period

The era following the end of a significant conflict, often marked by reconstruction, reassessment of policies, and sometimes significant societal change.