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:

Hierarchies

Systems of organization where entities are ranked one above the other based on their status or authority.

Memory Disruption

An interference or break in the continuity of memory, often due to injury, stress, or certain neurological conditions.

Trauma

A deeply distressing or disturbing experience that can lead to physical, emotional, or psychological harm.

Iconic Memory

A fast-decaying store of visual information; a component of the sensory memory that briefly holds images.