Upon audit of Ms, Evelyn Carlyle's 2020 Form 1040, the revenue agent determined a $21,200 understatement of the tax liability. Required: a. Compute Ms. Carlyle's penalty for substantial understatement if the correct tax liability for 2020 was $220,600 Penalty _$_________

Upon audit of Ms, Evelyn Carlyle's 2020 Form 1040, the revenue agent determined a $21,200 understatement of the tax liability. Required: a. Compute Ms. Carlyle's penalty for substantial understatement if the correct tax liability for 2020 was $220,600 Penalty _$_________

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Upon audit of Ms, Evelyn Carlyle's 2020 Form 1040, the revenue agent determined a $21,200 understatement of the tax liability.

Required:

a. Compute Ms. Carlyle's penalty for substantial understatement if the correct tax liability for 2020 was $220,600

Penalty _$_________

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