Tax Court Case Addresses Reasonable Cause Standard and Tax Penalties
By EsqSocial Corporation 18/05/21
A recent Tax Court decision addresses the “reasonable cause” standard — a frequent issue in the IRS-penalty context. As the case demonstrates, whether a taxpayer acted with reasonable cause and in good faith is determined on a case-by-case basis. Woll highlights the fact that a taxpayer who has an advanced degree, such as an attorney, will likely have more difficulty demonstrating reasonable cause. Based on the Woll decision, reliance on a computer program or failure to read a tax form, such as...
By: Freeman Law