This year, the IRS audited Mr. and Mrs. Simon's 2013 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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If the revenue agent concludes that the Simons made a reasonable attempt to compute their tax, they will have to pay the underpayment amount of $13,780 plus interest on the underpayment as a result of the audit. The interest will be calculated from the due date of the tax return until the date of payment. Option A is incorrect because they will still have to pay the underpayment amount plus interest. Option B is incorrect because it does not account for the interest. Option D is incorrect as it provides information about the penalty that may be assessed only if the revenue agent concludes that the Simons were negligent in preparing their return.

This Year, the IRS Audited Mr