John underpaid his taxes this year by 23000 due to negligenc

John underpaid his taxes this year by $23,000 due to negligence. John\'s penalty for negligence under the accuracy-related penalty is:

Solution

As per IRC 6662(A) For Accuracy-Related Penalty on Understatements with Respect to Reportable Transactions, the penalty is 20 percent of the reportable transaction understatement.

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