The IRS Can Impose a ________ Penalty on Any Portion

question 3

Multiple Choice

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.

• A)20%
• B)25%
• C)75%
• D)5%

---

Definitions:

Defective Product

A product that is not fit for its intended use due to manufacturing flaws, design errors, or misleading labels.

Legal Action

The process of taking a dispute to a law court, or the action of engaging in lawsuits or legal proceedings.

Sue

To initiate a legal proceeding against an entity or individual for the recovery of rights, redress of harms, or enforcement of agreements.

Type of Contract

A legal agreement between parties that outlines their rights, duties, and responsibilities.