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 $25,000.

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 $25,000.
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Question

Quizplus · Accepted Answer

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

Upon Audit by the IRS, Faith Is Assessed a Deficiency