Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He sued the car manufacturer for ins
talling faulty airbags. But in the course of the case being heard in court, the car company and Mark decided to settle the lawsuit out of court. What important function of the law was served in this case
Answer: The negligence penalty is 20% of the amount you underpaid
The IRS may impose the negligence penalty if it decides that a taxpayer's negligence or disregard of the rules or regulations caused an underpayment of taxes.
