The IRS Revenue Agent is claiming that I am willfully negligent and is assessing a 20% 'accuracy penalty' on top of all the other penalties.
Are there any relief options for people that have encountered this challenge?
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers

John Dundon, II EA
We see this quite often and my heart goes out to you. Start by checking out this post -> www.johnrdundon.com/negligence-vs-disregard-it-matters-in-determining-if-the-accuracy-penalty-applies/
Leave a Comment
260 weeks ago

Michael Cash
If the tax deficiency increases your tax by at least 10% of what was on the original return or $5,000, whichever is more, a 20% penalty will be added automatically in a knee-jerk reaction because IRS presumes you were negligent. The taxpayer will need to show that they were not negligent by attempting to follow the rules an/or received advice from a knowledgeable authority so if you follow the advice of your responsible preparer you should be able to avoid the penalty.
Leave a Comment
260 weeks ago

Michael Cash
If the tax deficiency increases your tax by at least 10% of what was on the original return or $5,000, whichever is more, a 20% penalty will be added automatically in a knee-jerk reaction because IRS presumes you were negligent. The taxpayer will need to show that they were not negligent by attempting to follow the rules an/or received advice from a knowledgeable authority so if you follow the advice of your responsible preparer you should be able to avoid the penalty.
Leave a Comment
260 weeks ago

Kenneth Reid
What is the accuracy penalty related to? More information is needed regarding the penalties being assessed. Without more information, it is difficult to answer your question appropriately.
Leave a Comment
260 weeks ago