Concerning the Penalty for Civil Tax Fraud

question 38

Multiple Choice

Concerning the penalty for civil tax fraud:

• A) The burden of proof is on the taxpayer to establish that no fraud was committed.
• B) Fraudulent behavior is more than mere negligence on the part of the taxpayer.
• C) The penalty is 100% of the underpayment.
• D) Fraud is defined in Code §§ 6663(b) and (f).

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Definitions:

ABC Construction

Implies a generic name for a construction company and does not denote any particular entity unless specifically referenced.

XYZ Subcontractor

A generic term for a secondary contractor hired by the main contractor to perform specific tasks or duties in a larger project.

Mining Company

A business enterprise involved in the extraction of minerals, metals, or other geological materials from the earth's surface or subsurface.

Union Meetings

Gatherings of union members to discuss workplace issues, negotiate collective bargaining agreements, and make decisions regarding union activities.