1. Unless a gross valuation misstatement is made, the accuracy-related penalty amounts to 20 percent of the portion of the tax underpayment. True/False

2. Failure to file as a result of a taxpayer not having the sufficient funds to pay the tax liability is an example of reasonable cause. True/False

3. Underpayment is defined in 6664 as the correct amount of tax, less the sum of the amount of tax reported by the taxpayer on the return, plus any amount previously assessed or collected, less the amount of rebates made. True/False

4. Elton Filed his 2019 income tax return on July 31, 2020, showing total tax of $5,000 and a refund of $100. All tax had been paid by the due date of April 15, 2020. The failure to file penalty is 0. True/False

5. For purposes of calculating the interest rate on overpayments and underpayments, the federal short-term interest rate is rounded to the nearest:

a. 1/10 %

b. 1%

c. tenth %

d. none of these