Tax Return Penalties Miami FL

Tax return penalties are catgorized into two prongs: the negligence prong and the diregard of the rules and regulations prong.

Local Companies

A-1 Tax Services Inc
(305) 392-6264
7570 Nw 14th St
Miami, FL
Pastroff Barja Kelly & Co CPA
(305) 669-8368
7400 SW 50th Ter
Miami, FL
Accounting Tax Practice
(305) 220-2127
175 Fontainebleau Blvd
Miami, FL
141st Street Tax Express
(305) 681-0039
734 Nw 141st St
Miami, FL
Unique Income Tax Services
305-409-9940
15600 NW 27 PL
Miami, FL
Accounting Solutions & Automation Incorporated
(850) 430-4031
1101 Gulf Breeze Pkwy
Miami, FL
Tax Resource Center
(954) 756-2693
20401 NW 2nd Avenue
Miami, FL
A & M Accounting and Professional Services
(305) 893-2670
1695 Ne 123rd St
Miami, FL
A B C D Accounting
(305) 919-9700
1821 Ne 146th St
Miami, FL
AB Consulting And Accounting Services
(305) 653-5295
1428 Ne 163rd St
Miami, FL

 

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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.


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Featured Local Company

A-1 Tax Services Inc

(305) 392-6264
7570 Nw 14th St
Miami, FL