Accuracy Related Penalties
If amounts reported on an income tax return are later adjusted by the IRS and a tax increase results, an additional penalty may apply. This penalty of 20% or 40% of the increase in tax is due in the case of substantial understatement of tax, substantial valuation misstatements, transfer pricing adjustments, or negligence or disregard of rules or regulations. Special rules apply for each of these types of errors under which the penalty may be waived.
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Famous quotes containing the words accuracy, related and/or penalties:
“My attachment has neither the blindness of the beginning, nor the microscopic accuracy of the close of such liaisons.”
—George Gordon Noel Byron (1788–1824)
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—Ralph Waldo Emerson (1803–1882)
“I’ve got to go. That’s one of the penalties of being a doctor. I never seem to finish a conversation.”
—Robert M. Fresco, and Jack Arnold. Dr. Matt Hastings (John Agar)