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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?
Penalty
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Tax Professional Answers

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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 307 weeks ago

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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 306 weeks ago

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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 306 weeks ago

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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 306 weeks ago

 

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