Carmens current year individual return reports a $6,000 deduction for a questionable item not relating to a
Question:
a. What substantial understatement penalty (if any) will be imposed?
b. Will the penalty bear interest?
c. How would your answer to Parts a and b change if Carmen reported a $20,000 deduction instead of $6,000, and her tax liability increased by $6,200 to $26,200?
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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