The most straightforward job of the shareholder is to provide funds. In practice, however, it isnât straightforward at all. Corporations do need capital to invest in growth, but they donât get it in aggregate from shareholders.
Noun. 1. understatement-a statement that is restrained in ironic contrast to what might have been said. statement-a message that is stated or declared; a communication (oral or written) setting forth particulars or facts etc; according to his statement he was in London on that day.
An understatement of more than 25 percent of the gross income listed on the return is considered a substantial understatement. The IRS has six years from the time the return was filed to assess additional tax. The statute on the unreported income includes any penalty or interest amounts added onto your tax.