Asked by Elmer Trejo on Jun 10, 2024
Verified
The accuracy-related penalty applies when negligence or any substantial understatement occurs.
Accuracy-Related Penalty
A penalty imposed by the Internal Revenue Service (IRS) for underpayment of taxes due to negligence or disregard of rules and regulations.
Negligence
The failure to exercise reasonable care or to take precautions that could prevent harm, leading to possible legal liability.
- Comprehend the corrections and fines linked to declaration status, inaccuracies, and due dates in tax submissions.
Verified Answer
NG
Neily GwenneJun 15, 2024
Final Answer :
True
Explanation :
The accuracy-related penalty can be imposed if a taxpayer was negligent or there was a substantial understatement of tax.
Learning Objectives
- Comprehend the corrections and fines linked to declaration status, inaccuracies, and due dates in tax submissions.