A Penalty Can Be Assessed from an Appraiser Who Knew

question 14

Short Answer

A penalty can be assessed from an appraiser who knew that his/her improper appraisal would be used as part of a tax computation, in the amount of the lesser of % of the tax understatement or ____________________ % of the appraisal fee collected.

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Definitions:

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of borrowed money.

Face Amount

The total value that will be paid to beneficiaries at the maturity of an insurance policy or the principal value of a bond at its maturity.

Note Issued

A financial instrument representing a promise to pay a specified amount of money at a future date, often used for loans or as corporate debt.

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.