IRS Modifies Position on Frozen Refundable Credits and the Substantial Understatement Penalty

The IRS announced that it will no longer impose a substantial understatement penalty when a taxpayer claims a refundable tax credit he or she is not entitled to, but the IRS does not pay the refund or approve the credit.

Source: http://feedproxy.google.com/~r/AICPA_TaxAdvisor/~3/W_AHyCNsnqg/NewsNotes_Nov2012-story-03.aspx

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