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

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Liberty Tax Service/Louisville Tax Planning
502-966-8417
5005 Preston Highway
LouISVILLE, KY

Tax Alternatives
(502) 429-5153
8151 New Lagrange Rd
Louisville, KY

Taxing Times
(502) 368-0036
4002 Preston Hwy
Louisville, KY

H & R Block
(502) 968-8451
Jefferson Mall
Louisville, KY

Marcus Accounting Service
(502) 458-8873
2100 Gardiner Ln Ste 114
Louisville, KY

H & R Block
(502) 447-6863
4443 Cane Run Rd
Louisville, KY

K W H Accounting
(502) 776-9199
2141 Dixie Hwy
Louisville, KY

H & R Block
(502) 451-8293
3075 Breckenridge Ln
Louisville, KY

Major Accounting & Tax Service
(502) 775-5358
634 Lindell Ave
Louisville, KY

Jackson Hewitt Tax Services
(502) 447-4577
3811 7th Street Rd
Louisville, KY

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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

Liberty Tax Service/Louisville Tax Planning

502-966-8417
5005 Preston Highway
LouISVILLE, KY