After auditing Jayne Morgan's 2017 Form 1040, the IRS assessed a $19,900 deficiency of income tax. Jayne's return reported $218,000 tax so, her correct 2017 income tax was $237,900 ($19,900 deficiency + $218,000 reported tax). Compute Jayne's penalty for a substantial understatement of income tax.

A. $2,980
B. $3,980
C. $5,000
D. $0


Answer: D

Business

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What will be an ideal response?

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Answer the following statement true (T) or false (F)

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