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

Local Companies

Complete Bookkeeping Service
(704) 347-1360
401 E 2nd St
Charlotte, NC

Abernathy Michael C Cpa
(704) 334-3600
3600 Bank Of America Plaza
Charlotte, NC

All About Taxes
(704) 339-0267
2515 The Plz
Charlotte, NC

Agility Recovery Solutions
(704) 341-8700
2101 Rexford Road Suite 350E
Charlotte, NC

Accounting Bookkeeping & Tax Financial Service Plus Inc
(704) 921-1201
529 W Sugar Creek Rd
Charlotte, NC

Computer Plus Inc
(704) 598-2259
5430 N Tryon St
Charlotte, NC

As Speedy Tax Service
(704) 523-2900
1101 Tyvola Rd
Charlotte, NC

Confia Rapi-Tax & Insurance
(704) 527-4848
6823 South Blvd
Charlotte, NC

Frees Tax Service
(704) 527-9431
5435 Fernhill Dr
Charlotte, NC

Accessibles Tax Service
(704) 568-1313
5237 Albemarle Rd
Charlotte, NC

provided by:

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

Complete Bookkeeping Service

(704) 347-1360
401 E 2nd St
Charlotte, NC