Editing Taxation in the United States (section)

====Accuracy-related penalty====

This penalty is applied when the person pays less than what is stated on his or her tax return. The reasons why people fail to pay the corresponding amount may be because they have not reported the actual or full amount of their income, on the other hand, it may happen that the person has applied for some type of extension or credit for which he/she does not qualify. Within this penalty the IRS can proceed in two ways. It can apply a Negligence or disregard of the rules or regulations penalty, which is due to the lack of attention and the correct following of the U.S. tax laws to complete the tax return. It is considered that the person may recklessly or intentionally disregard the established rules or regulations. On the other hand, there may also be the case where a Substantial understatement of income tax penalty applies, which applies when the person understates his tax liability by 10% of the tax shown on his return or equals USD 5,000. However, if the person has qualified for a business deduction, the percentage is 5% or USD 5,000.<ref name="IRS:6">{{cite web |title=Accuracy-related penalty |url=https://www.irs.gov/payments/accuracy-related-penalty |website=Internal Revenue Service |publisher=IRS |access-date=25 April 2024}}</ref>