### 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 this title 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**

