The revenue agent who audited Mr.and Mrs.Wilke's 2014 Form 1040 assessed a $40,200 deficiency and concluded that $13,900 of the deficiency resulted from Mr.Wilke's deliberate disregard of the tax rules concerning business entertainment expense.The remaining deficiency resulted from various errors caused by confusing instructions on the tax forms.Compute the negligence penalty that the agent can impose.
A) $8,040
B) $3,475
C) $2,780
D) Only a federal court can impose a negligence penalty.
Correct Answer:
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