Upon Audit by the IRS, Faith Is Assessed a Deficiency

question 94

True/False

Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.The 20% negligence penalty will apply to $40,000.

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Definitions:

Breach

Violation of a law, duty, agreement, or trust.

Small Claims Court

A legal venue that handles minor civil disputes and claims typically involving small sums of money, offering a quicker and less complicated process than higher courts.

Duress

Coercion or pressure exerted upon someone to compel that person to act in a way they would not ordinarily act.

Unduly Influenced

A legal term referring to a situation where an individual is persuaded or coerced into acting against their free will or best interest, often in contracts or wills.