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:
“Such is the never-failing beauty and accuracy of language, the most perfect art in the world; the chisel of a thousand years retouches it.”
—Henry David Thoreau (1817–1862)
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—Ralph Waldo Emerson (1803–1882)
“One of the great penalties those of us who live our lives in full view of the public must pay is the loss of that most cherished birthright of man’s privacy.”
—Mary Pickford (1893–1979)