Unless a gross valuation misstatement is made, the accuracy-related penalty amounts to20 percent of the portion of the tax underpayment.

Question

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The accuracy-related penalty typically amounts to 20 percent of the portion of the underpayment of tax that is due to negligence, disregard of rules or regulations, or a substantial understatement of income tax, unless it involves a gross valuation misstatement, in which case the penalty may be higher.

Unless a Gross Valuation Misstatement Is Made, the Accuracy-Related Penalty