George was hit by a delivery truck while walking his dog in 2021. He received punitive damages as part of the lawsuit of $230,000. George did not think this was taxable income and did not include it with his 2021 tax return. Upon audit by the IRS, he owes $57,500 of additional tax liability for 2021. Assuming that his actions were negligent, but not fraudulent, what would be his accuracy penalty? Penalty $
George was hit by a delivery truck while walking his dog in 2021. He received punitive damages as part of the lawsuit of $230,000. George did not think this was taxable income and did not include it with his 2021 tax return. Upon audit by the IRS, he owes $57,500 of additional tax liability for 2021. Assuming that his actions were negligent, but not fraudulent, what would be his accuracy penalty? Penalty $
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Transcribed Image Text:George was hit by a delivery truck while walking his dog in 2021. He received punitive damages as part of the lawsuit of $230,000.
George did not think this was taxable income and did not include it with his 2021 tax return. Upon audit by the IRS, he owes $57,500
of additional tax liability for 2021. Assuming that his actions were negligent, but not fraudulent, what would be his accuracy penalty?
Penalty
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