This year, the IRS audited Mr. and Mr. Simon's 2018 income tax return and determined that they underpaid their tax by $13,780. Which of the following statements is true?

Question

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The Simons must pay the $13,780 deficiency and interest on the underpaid amount. This is because interest is charged on any unpaid tax from the due date of the return until the date of payment. Option A is incorrect because the Simons will still have to pay the deficiency and interest even if they made a reasonable attempt to compute their tax. Option B is incorrect because it doesn't take into account the interest that will also have to be paid. Option D is incorrect because it only applies if the deficiency was due to negligence, and it doesn't mention the interest that will also be charged.

This Year, the IRS Audited Mr