Craig commits fraud on his tax return.It is found that he was $45,000 deficient in his tax because of the fraud.What would his penalty be?

Name: Craig commits fraud on his tax return.It is found that he was $45,000 deficient in his tax because of the fraud.What would his penalty be?
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

The penalty for tax fraud is typically equal to 75% of the underpayment caused by the fraud. In this case, 75% of $45,000 is $33,750. Therefore, the correct answer is B.

Craig Commits Fraud on His Tax Return