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.
Read more about this topic: IRS Penalties
Famous quotes containing the words accuracy, related and/or penalties:
“In everything from athletic ability to popularity to looks, brains, and clothes, children rank themselves against others. At this age [7 and 8], children can tell you with amazing accuracy who has the coolest clothes, who tells the biggest lies, who is the best reader, who runs the fastest, and who is the most popular boy in the third grade.”
—Stanley I. Greenspan (20th century)
“Perhaps it is nothingness which is real and our dream which is non-existent, but then we feel think that these musical phrases, and the notions related to the dream, are nothing too. We will die, but our hostages are the divine captives who will follow our chance. And death with them is somewhat less bitter, less inglorious, perhaps less probable.”
—Marcel Proust (1871–1922)
“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)