### Question
How does the law define substantial understatement?


### Answer
Under *26 U.S.C. § 6013*, **substantial understatement** is defined as:

> any understatement (as defined in section 6662(d)(2)(A)) which exceeds $500

#### Citation:
  - *26 U.S.C. § 6013*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter A-Returns and Records > PART II-TAX RETURNS OR STATEMENTS > Subpart B-Income Tax Returns**

