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taxmap/pubs/p561-003.htm#TXMP17a156e5 Penalty(p11)

Penalty

You may be liable for a penalty if you overstate the value or adjusted basis of donated property.

taxmap/pubs/p561-003.htm#TXMP2765ac68 20% penalty.(p11)

The penalty is 20% of the underpayment of tax related to the overstatement if:

• The value or adjusted basis claimed on the return is 200% (150% for returns filed after August 17, 2006) or more of the correct amount, and
• You underpaid your tax by more than $5,000 because of the overstatement.

taxmap/pubs/p561-003.htm#TXMP37a7f678 40% penalty.(p11)

The penalty is 40%, rather than 20%, if:

• The value or adjusted basis claimed on the return is 400% (200% for returns filed after August 17, 2006) or more of the correct amount, and
• You underpaid your tax by more than $5,000 because of the overstatement.

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