If the IRS audits you and says you owe more tax, obviously you aren’t happy. But it gets worse: the IRS will often impose an accuracy-related penalty on top of the tax.
This penalty is a whopping 20 percent of the additional tax owed. For a $10,000 audit assessment, that’s an additional $2,000 you have to send to Uncle Sam.
In this article, we discuss when an accuracy-related penalty might apply and how you can potentially save yourself thousands of dollars by avoiding the penalty using one of three different strategies. ... Log in to view full article.