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

Local Companies

3T Solutions
901-774-6351
902 Polk Ave.
Memphis, TN

Tax Wise Solutions LLC
(901) 386-0092
4570 Raleigh Lagrange Rd
Memphis, TN

Arf & Associates Quick Refund
(901) 452-7512
1486 Airways Blvd
Memphis, TN

Block H & R
(901) 757-7774
4780 Riverdale Rd
Memphis, TN

Tax Wise Solutions
(901) 386-0092
4570 Raleigh Lagrange Rd
Memphis, TN

H & R Block
(901) 366-2009
6502 Winchester Rd
Memphis, TN

Mo Money Tax Service
(901) 946-4829
Memphis, TN

Jackson Hewitt Tax Services
(901) 542-0309
3679 S Mendenhall Rd
Memphis, TN

H & R Block
(901) 576-8419
112 Auction Ave
Memphis, TN

H & R Block
(901) 346-8320
1200 Southland Mall
Memphis, TN

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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

3T Solutions

Did you know that shabby tax planning is costing you between $5,000-$20,000 a year in tax deductions?

901-774-6351
902 Polk Ave.
Memphis, TN
Marquette-Isabel.com/taxdeductions.aspx

Did you know that shabby tax planning is costing you between $5,000-$20,000 a year in tax deductions?