Which of the following is a consequence of failing to disclose relevant tax information?

Failing to disclose relevant tax information can lead to an audit and penalties from tax authorities. Tax authorities rely on accurate and complete information to determine tax liabilities. When an individual or business does not provide all necessary details, it can trigger audits as the authorities seek to ensure compliance with tax laws.

If discrepancies are found during an audit, the taxpayer can face not only the requirement to pay any owed taxes but also additional penalties for non-compliance. These penalties are designed to encourage full transparency and adherence to tax regulations. As a result, ensuring all relevant tax information is disclosed is crucial for avoiding such negative consequences and maintaining a good standing with tax authorities.

The other options do not align with the consequences of failing to disclose relevant information. A tax refund, for example, typically occurs when a taxpayer has overpaid on their taxes, not as a result of failing to disclose information. Similarly, reduced taxable income and lower tax rates would not be direct outcomes of non-disclosure; rather, these adjustments are generally based on legitimate deductions and credits.