Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.The 20% negligence penalty will apply to $40,000.

Name: Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable to negligence.The 20% negligence penalty will apply to $40,000.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The 20% negligence penalty applies only to the portion of the deficiency attributable to negligence, which is $25,000 in this case.

Upon Audit by the IRS, Faith Is Assessed a Deficiency