which of the following is not true about the accuracy penalty? The accuracy penalty is: a. imposed for negligence b. a criminal penalty c. a monetary penalty d. a civil penalty
Accuracy penalty is imposed if it is concluded that a taxpayer's negligence or disregard of rules and regulations caused an underpayment of tax, or if an underpament exceeded a computational threshold called a substantial understatement. Hence it is imposed only when the issue relates to a civil matter involving monetary issues.Criminal penalty has nothing to do with it. Tax penalties are always associated with civil penalties and not with criminal issues. So, (b) a criminal penalty is not true about the accuracy penalty.
Get Answers For Free
Most questions answered within 1 hours.