I’m not a lawyer or cpa, so would definitely recommend talking to one if you want more solid answers. My understanding is that the penalties are a percentage of

I’m not a lawyer or cpa, so would definitely recommend talking to one if you want more solid answers. My understanding is that the penalties are a percentage of how much you misrepresented your taxes. Different tiers for different types of violations. Something like 20% on small mistakes and 75% for fraud. Beyond penalties they can come after you with civil and criminal charges if you committed fraud. Small mistakes may never trigger an audit, but audits can be random as well. If you’re audited they will find these mistakes. It’s much easier to claim negligence for small amounts than gross omissions. There probably isn’t a steadfast rule for when something would be considered fraud. My advice, don’t knowingly omit things, even small amounts. I wouldn’t sweat if you accidentally missed a few bucks in the past. If it’s any significant amount I’d file an amendment. I believe you aren’t liable for penalties if you unknowingly made a mistake and amend a return.