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%

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Definitions:

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan.

Attachment

A legal process in which a court designates property of the defendant to be seized or secured to satisfy a potential judgment.

Enforceable

A description of a legal agreement or contract that can be upheld or compelled by law.

Certificated Security

A security that is represented in physical, paper form rather than in electronic or digital form.