# Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. a. Determine Rivera's civil fraud penalty. b. Rivera pays the penalty five years after committing the fraudulent act. Her after

Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud.

a. Determine Rivera's civil fraud penalty.

b. Rivera pays the penalty five years after committing the fraudulent act. Her after tax rate of return on available cash is 9%. What is the present value of Rivera's penalty?

a. Determine Rivera's civil fraud penalty.

b. Rivera pays the penalty five years after committing the fraudulent act. Her after tax rate of return on available cash is 9%. What is the present value of Rivera's penalty?

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## A 75 civil penalty is imposed on any underpayment resulting from fraud by the …View the full answer

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**ISBN:** 9781305874169

40th Edition

**Authors:** William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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