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.
Substantial Understatement Penalty. In the case that a substantial understatement of income tax is evident on a tax return, a 20% penalty will be imposed according to IRC Sec. 6662(b)(2). There are however, a few defenses that can be used against the 20% penalty, these defenses include: 1. Insubstantial understatement defense.