Sentence examples for a substantial understatement of from inspiring English sources

Because the $8,163 understatement exceeds the greater of 10percentt of the tax required to be shown on the return for the year, i.e., $1,234 $12,339 ×.100) or $5,000, A has a substantial understatement of income tax for the year.

If any portion of an underpayment, as defined in section 6664(a) and § 1.6664-2, of any income tax imposed under subtitle A of the Code that is required to be shown on a return is attributable to a substantial understatement of such income tax, there is added to the tax an amount equal to 20percentt of such portion.

The penalty for a substantial understatement of income tax applies to any portion of an underpayment for a year to which a loss, deduction or credit is carried that is attributable to a "tainted item" for the year in which the carryback or carryover of the loss, deduction or credit arises (the "loss or credit year").

That is called a substantial understatement of income.

The statute is six years if your return includes a "substantial understatement of income".

There is also a penalty for a substantial understatement of income tax.

Only the $22,250 understatement for 1988 is a substantial understatement, i.e., it exceeds the greater of (a) $2,225 (10percentt of the tax required to be shown on the return for the taxable year (.10 × $22,250)) or (b) $10,000.

When there is a substantial understatement, the IRS has six years to challenge the return, unless one of the below three exceptions apply.

There's also the possibility that the IRS will choose to assess an accuracy related penalty against such taxpayers for negligence or "substantial understatement of tax". The amount of such a penalty would be 20% of the additional tax assessed by the IRS.

Substantial understatement of income tax.

§ 1.6662-4 Sunderstatementerstatement of income tax.