When the Accuracy-Related Penalty Applies, Interest on the Penalty Accrues

question 41

Multiple Choice

When the accuracy-related penalty applies, interest on the penalty accrues from the:

• A) date on which assessment is made
• B) date on which the penalty was imposed or December 31 whichever is earlier
• C) date on which the penalty was imposed
• D) due date of the return

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Definitions:

Basic Assumption

An underlying assumption that is accepted as true without proof as the basis for argument or action.

Avoided Contract

A contract that has been declared null and void, often due to legal deficiencies or mutual agreement.

Identity, Existence

The concept or fact of being the same entity as described or claimed, often used in legal contexts to determine the authenticity or truthfulness of a person or entity.

Rescinds Contract

The act of officially cancelling or terminating a contract by mutual agreement of the parties involved or due to some legal reason.