Identify which of the following statements is false.
A)If fraud is asserted in a tax transaction, the burden of proof falls on the IRS.
B)The civil fraud penalty consists of 75% of the tax underpayment attributable to fraud plus 25% of the interest payable on the portion of the underpayment resulting from the fraud.
C)The government must prove its case "beyond a reasonable doubt" in order for the court or jury to convict a taxpayer of criminal fraud.
D)The fraud penalty can be imposed with respect to income, gift, and estate tax returns.

Question

Quizplus · Accepted Answer

The civil fraud penalty is generally 75% of the underpayment of tax attributable to fraud. There is no additional 25% penalty on the interest payable on the underpayment.

Identify Which of the Following Statements Is False