The IRS Can't Impose a Negligence Penalty on an Individual

question 82

True/False

The IRS can't impose a negligence penalty on an individual who relied on the advice of a CPA in preparing his tax return.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, freedom of entry and exit, and a product that is homogeneous across suppliers, where no single buyer or seller can influence the market price.

Sellers

Individuals or entities that offer goods or services to buyers in exchange for money or other valuable consideration.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net societal welfare loss.

Side Effects

Unintended consequences or secondary effects resulting from an action or decision, often seen in medicine, economics, and environmental policy.