Which of the Following Statements Does Not Reflect the Rules

question 81

Multiple Choice

Which of the following statements does not reflect the rules governing the accuracy-related penalty for negligence?

• A) The penalty rate is 20%.
• B) The penalty is imposed only on the part of the deficiency attributable to negligence.
• C) The penalty applies only to intentional tax understatements by the taxpayer.
• D) The penalty is waived if the taxpayer uses Form 8275 to disclose a return position that is reasonable though contrary to the IRS position.