A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position was made by the taxpayer; however, the basis for the position is reasonable. How much of an accuracy-related penalty will the taxpayer be assessed?

Question

5 December, 11:27

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Answers (1)

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Matthew Butler · Answer 1

2,000

Explanation:

To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.