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Publication 561 2001 Tax Year

Penalties

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This is archived information that pertains only to the 2001 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

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

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

  1. The value or adjusted basis claimed on the return is 200% or more of the correct amount, and
  2. You underpaid your tax by more than $5,000 because of the overstatement.

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

  1. The value or adjusted basis claimed on the return is 400% or more of the correct amount, and
  2. You underpaid your tax by more than $5,000 because of the overstatement.

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