What are the potential penalties for failing to maintain 6662 documentation in the US?
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
Robert Bachmann, MBA, CFA
A penalty only occurs if there is determined to be an adjustment. A penalty of 20% of the adjustment occurs if the adjustment is due to negligence. A penalty of 40% of the adjustment can occur in the IRS determined the taxpayer was willfully misleading in their position. All penalties are avoided if documentation is in place.Leave a Comment 77 weeks ago