Tax Return Penalties Philadelphia PA

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

Local Companies

A & M Berk Tax Service
(215) 567-3300
1505 Spring Garden St
Philadelphia, PA
A & M Berk Tax Service
(215) 844-9518
105 W Chelten Ave
Philadelphia, PA
TaxTime Financial
(215) 238-1650
525 South 4th St
Philadelphia, PA
1040 Now
(215) 923-9367
728 Christian St
Philadelphia, PA
A & T Business Service Inc
(215) 731-9955
1601 Washington Ave
Philadelphia, PA
Accounting & Tax Consultants Incorporated
(215) 748-1040
5129 Chestnut St
Philadelphia, PA
A 1 Protax Services Inc
(215) 289-6644
5924 Torresdale Ave
Philadelphia, PA
A Tax Brake Income Tax Service
(215) 624-7700
6431 Torresdale Ave
Philadelphia, PA
Accounting & Tax Service Center
(215) 332-2626
6722 Frankford Ave
Philadelphia, PA
Payroll Service Solutions
(215) 624-0922
7733 Frankford Ave
Philadelphia, PA

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.


Copyright © GotTrouble.com, Inc. All rights reserved.

Click here to read rest of the article

Featured Local Company

A & M Berk Tax Service

(215) 567-3300
1505 Spring Garden St
Philadelphia, PA