There are some really bad things that can happen to you if you are not tax compliant. Depending on what you do, you could be subject to a 75% fraud penalty or even forfeit your liberty - an all expenses paid stay at Club Fed. The chance of either of those things happening though is rather remote. Not so the 20% accuracy penalty. It is routinely, practically automatically, assessed if your understatement of tax crosses the threshold (greater of 10% of correct tax or $5,000). When you ar...
There are some really bad things that can happen to you if you are not tax compliant. Depending on what you do, you could be subject to a 75% fraud penalty or even forfeit your liberty - an all expenses paid stay at Club Fed. The chance of either of those things happening though is rather remote. Not so the 20% accuracy penalty. It is routinely, practically automatically, assessed if your understatement of tax crosses the threshold (greater of 10% of correct tax or $5,000). When you ar...
Share this Article
Recommended