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:

Leadership Traits

The distinctive characteristics or qualities that are considered conducive to effective leadership, such as integrity, determination, and empathy.

Cognitive Ability

The capacity of the brain to process information, reason, remember, and relate objects and concepts.

Physical Traits

Characteristics that are observable and measurable, mainly pertaining to the body.

Creativity

The ability to produce original and unusual ideas, or to make something new and imaginative.