Tax Return Penalties Birmingham AL - Birmingham AL, legal attorney, Birmingham AL legal help, Birmingham AL legal advice, Birmingham AL penalties, Birmingham AL negligence, Birmingham AL disregard of rules and regulations

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NationWide Tax Consultants
205-531-1043
4934 Summerplace Parkway
Hoover, AL

H & R Block
(205) 780-3640
Birmingham, AL

Waligora James
(205) 916-0900
167 Oxmoor Blvd
Birmingham, AL

H & R Block
(205) 326-0780
1900 11th Ave S
Birmingham, AL

H & R Block
(205) 798-1798
2473 Hackworth Rd
Birmingham, AL

Statewide Computerized Tax Service Inc
(205) 929-8299
1518 Bessemer Rd
Birmingham, AL

H & R Block
(205) 854-3270
1671 Centerpoint Pkw
Birmingham, AL

Block H & R Co
(205) 699-7816
Birmingham, AL

H & R Block
(205) 987-8844
1841 Montgomery Hwy S
Birmingham, AL

Express Refund
(205) 781-0523
Birmingham, AL

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This penalty is really composed of two alternative penalties. The first is the negligence prong and the second is the disregard of the rules and regulations prong.

"Negligence"
"Disregard of rules & regulations"

"Negligence"

"Negligence" includes (but is not limited to) any failure:

(1) to make a reasonable attempt to comply with the internal revenue laws;
(2) to exercise ordinary and reasonable care in preparation of a tax return; or
(3) to keep adequate books and records or to substantiate items properly.

Moreover, taking a position on your return that has a reasonable basis is not negligence. The IRS will typically find negligence if a taxpayer (1) fails to include on an income tax return income reported on an information return (such as an IRS Form 1099) or (2) fails to make a reasonable attempt to ascertain the correctness of a deduction, credit, or exclusion that would seem to a reasonable person to be "too good to be true".

"Disregard of rules & regulations"

This prong may be asserted if you carelessly, recklessly or intentionally disregard IRS rules and regulations - by taking a position on your return with little or no effort to determine whether the position is correct or knowingly taking a position that is incorrect.

Adequate disclosure on your tax return is not a defense against the negligence prong of the penalty, but may be a defense against the disregard prong. However, disclosure alone is not enough - you must show that there was a reasonable basis for the position.

Featured Local Company

NationWide Tax Consultants

205-531-1043
4934 Summerplace Parkway
Hoover, AL