A characteristic of the fraud penalties is:
A) When negligence and civil fraud apply to a deficiency, the negligence penalty predominates.
B) Criminal fraud can result in a fine and a prison sentence.
C) The criminal fraud penalty is 75% of the deficiency attributable to the fraud.
D) The IRS has the same burden of proof in the case of criminal fraud than with civil fraud.
E) None of these.

Question

Quizplus · Accepted Answer

Criminal fraud can result in both a fine and a prison sentence. A is incorrect because the negligence penalty is generally lower than the civil fraud penalty, but it does not "predominate." C is incorrect because the criminal fraud penalty is the full amount of the deficiency attributable to the fraud. D is incorrect because the burden of proof is higher for criminal fraud than civil fraud.

A Characteristic of the Fraud Penalties Is