A taxpayer files their return and pays the IRS $2,500 for their taxes due. Upon examination, the IRS determines that the taxpayer understated their liability and they actually owed $3,500. They assess a penalty for substantial understatment under Section 6662(d). What is the size of this penalty? 

Answer rating: 100% (QA)

The penalty for substantial understatement under Section 6662d of the Internal Reve... View the full answer