The IRS who audited Mr.Kodak's 2014 Form 1040 assessed an $87,400 deficiency.If the agent believes that the entire deficiency was caused by Mr.Kodak's willful attempt to cheat the government,compute the resulting civil fraud penalty.

Question

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The civil fraud penalty is equal to 75% of the portion of the underpayment of tax that is attributable to fraud. Therefore, the fraud penalty in this case would be 75% of $87,400, which is $65,550.

The IRS Who Audited Mr