A Taxpayer's Return Is Audited and Additional Taxes Are Assessed

question 56

Multiple Choice

A taxpayer's return is audited and additional taxes are assessed. The IRS also asserts that a negligence penalty should be assessed. The taxpayer concurs with the additional $15,000 tax liability; $7,000 of this amount is attributable to negligence. What is the amount of the penalty for negligence?

• A)$700
• B)$1,400
• C)$5,600
• D)$1,750

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Definitions:

Draining Wound

A wound that produces fluid or pus, needing careful management to prevent infection and promote healing.

Cardiac Disease

A term that encompasses a wide range of heart conditions affecting the heart's structure, function, or rhythm.

Fluid Balance

The maintenance of the proper amount of fluid in the body, crucial for the body's physiological functions.

Scar Tissue

Fibrous tissue that replaces normal tissue after an injury, often resulting in a mark on the skin or internal tissue.