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24 November, 11:48

Craig commits fraud on his tax return. it is found that he was $40,000 deficient in his tax because of the fraud. what would his penalty be?

a. $30,000

b. $0

c. $40,000

d. $500

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Answers (1)
  1. 24 November, 12:46
    +1
    The criminal fraud tax penalty is 75% of the money deficiency attributable to the fraud. Since the fraud deficient committed by Craig amounts to $40,000, therefore the penalty is:

    75% = 0.75

    Penalty = 0.75 * $40,000

    Penalty = $30,000

    Answer:

    A. $30,000
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