Question

An accuracy-related penalty applies to the portion of tax underpayment attributable to

Answer 1

Explanation:

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EXECUTIVE SUMMARY. Sec. 6662 imposes an accuracy-related penalty equal to 20% of any underpayment of federal tax resulting from certain specified taxpayer behaviors (e.g., negligence, disregard of rules or regulations, substantial understatement of income tax, and certain valuation misstatements).

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Answer 2

Explanation:

The penalty is normally 20% of the total understatement of tax. In certain cases, with gross valuation misstatements (discussed below) it may be 40%. It applies to the portion of underpayment caused by one or more of the penalties below (but not attributed to fraud).