Tax
Sep. 2, 2020
IRS waives penalties for reasonable cause, but what’s that?
The tax code is chock full of penalties, so you always want to behave reasonably and in good faith. One of the biggest and most misunderstood grounds of relief from penalties is “reasonable cause.” Some penalty defenses involve an absence of willful neglect, too. Isn’t that proving a negative? Yes, and guess who wins in a tax penalty stalemate? The IRS, of course.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
The tax code is chock full of penalties, so you always want to behave reasonably and in good faith. One of the biggest and most misunderstood grounds of relief from penalties is "reasonable cause." Some penalty defenses involve an absence of willful neglect, too.
Isn't that proving a negative? Yes, and guess who wins in a tax penalty stalemate? The IRS, of course.
You bear the burden of substantia...
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