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:

Active Listening

The technique of fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Message Source

The originator or sender of a communication message, who initiates the message to be received by an audience.

Space

The physical or virtual extent in which objects and events occur and have relative position and direction.

Verbal Messages

Information or feelings conveyed through the spoken word as opposed to non-verbal ways of communication.