If the IRS assesses additional tax on a tax return upon audit, a taxpayer may be subject to interest and penalties on the underpayment.

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If the IRS assesses additional tax on a tax return upon audit, the taxpayer may be subject to both interest and penalties on the underpayment. The interest is calculated based on the amount of time the tax payment is late, while the penalty is a percentage of the unpaid tax amount.

If the IRS Assesses Additional Tax on a Tax Return