When the accuracy-related penalty applies, interest on the penalty accrues from the:
A) date on which assessment is made
B) date on which the penalty was imposed or December 31 whichever is earlier
C) date on which the penalty was imposed
D) due date of the return

Question

Quizplus · Accepted Answer

Interest on the accuracy-related penalty accrues from the due date of the return, as this is when the tax liability was originally due.

When the Accuracy-Related Penalty Applies, Interest on the Penalty Accrues