The Revenue Agent Who Audited Mr Silver's 2015 Form 1040

question 39

Multiple Choice

The revenue agent who audited Mr Silver's 2015 Form 1040 concluded that Mr Silver deliberately disregarded the tax rules about charitable contributions. Consequently, the agent disallowed $19,320 of Mr Silver's contribution deduction. Mr Silver also miscalculated his AMT in spite of his good faith effort to make the difficult calculation. Because of these two errors, the agent assessed a tax deficiency for 2015. Which of the following statements is false? 

• A) The agent has the authority to impose a negligence penalty in addition to the deficiency.
• B) The agent could impose a negligence penalty on the entire deficiency.
• C) The agent could impose a negligence penalty on the portion of the deficiency attributable to the disallowed contribution deduction.
• D) If the agent imposes a negligence penalty, Mr. Silver has the right to appeal the penalty.

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Definitions:

Critical Thinking Attitude

An approach to problem-solving that involves questioning assumptions and carefully evaluating evidence to guide decision making.

Display

A device or mechanism designed to visually present information, such as a computer monitor, smartphone screen, or digital signage.

Asking

The act of requesting information, clarification, or action from another person.

Postsurgical Incision Pain

Discomfort or pain that occurs at the site of a surgical incision following a procedure; a common postoperative symptom.