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Sergio filed a tax return that later the IRS determined had an underpayment of tax due to fraud. What is the penalty for fraud? 20%

Sergio filed a tax return that later the IRS determined had an underpayment of tax due to fraud. What is the penalty for fraud? 



20% of the underpayment attributable to fraud. 



75% of the underpayment attributable to fraud. 



There is a $2,500 penalty imposed for fraudulent returns. 



There is a $5,000 penalty imposed for fraudulent returns.

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