What does monetary penalty mean on the CPA exam?
Monetary penalty. A fixed dollar amount imposed for a specific failure, separate from the tax owed and separate from interest. It is not deductible.
Defined against Sec. 6695.
Which CPA exam sections use monetary penalty?
Monetary penalty appears in the REG section of the CPA exam.
Related terms
- measurement date: The date at which an amount is fixed for accounting.
- tolerable misstatement: A monetary amount set so that the risk of the actual misstatement in the population exceeding it is acceptably low.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.