### Question
What is the definition of understatement of liability?


### Answer
The definition of **understatement of liability** is as follows in *26 U.S.C. § 6694*:

> any understatement of the net amount payable with respect to any tax imposed by subtitle A or any overstatement of the net amount creditable or refundable with respect to any such tax

#### Citation:
  - *26 U.S.C. § 6694*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter B-Assessable Penalties > PART I-GENERAL PROVISIONS**

