A taxpayer overstates the amount of their charitable contributions by $4,546 and saves themselves $1,000 in taxes in doing so. When the IRS reviews the return, they determine that the taxpayer had no actual charitable contributions to deduct. What amount of penalty will the taxpayer face from this action under IRC Section 6662(i)?

Answer rating: 100% (QA)

Under IRC Section 6662i the penalty for a substantial valuation misstatement is 20 of the und... View the full answer