Craig commits fraud on his tax return. It is found that he was $40,000 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 $40,000 deficient in his tax because of the fraud. What would his penalty be?
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Question

Quizplus · Accepted Answer

The penalty for tax fraud is typically 75% of the underpaid tax amount. Therefore, in this case, the penalty would be 75% of $40,000, which is $30,000.

Craig Commits Fraud on His Tax Return