Tax Return Penalties Washington DC

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

Local Companies

Jackson Hewitt Tax Service
(202) 561-3760
4015 S Capitol St SW
Washington, DC

National Tax & Book-Keeping Services
(202) 328-2385
1933 18th St NW
Washington, DC

Alfa Omega Tax Service
(202) 328-6380
3104 Mount Pleasant St NW
Washington, DC

Block H & R Premium
(202) 466-4411
2020 K St NW
Washington, DC

Wisdom Tax Services
(202) 291-4111
4515 14th St NW
Washington, DC

Duarte & Co CPA Llp
(202) 243-0563
5335 Wisconsin Ave NW
Washington, DC

Capitol Hill Tax & Business Services
(202) 548-2450
749 8th St SE Ste 2
Washington, DC

H & R Block
(202) 364-1269
4727 Wisconsin Ave NW
Washington, DC

Jackson Hewitt Tax Service
(202) 581-1220
3849 Pennsylvania Ave SE
Washington, DC

Block H & R Premium
(202) 466-4411
2020 K St NW
Washington, DC

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

Jackson Hewitt - Four Corners

301-681-7180
109 University Blvd. West
Silver Spring, MD

Related Local Events

Clarendon Business Opportunity Network
Dates: 6/17/2009 - 6/17/2009
Location: Whitlow's on Wilson
Arlington, VA
View Details

International Tax Seminars
Dates: 6/8/2009 - 6/9/2009
Location: Willard Intercontinental Hotel
Washington, DC
View Details

Federal Procurement Seminar
Dates: 5/26/2009 - 5/26/2009
Location: Pitney Bowes Building
Annandale, VA
View Details

Save Articles.DirectoryM.net

RSS feed

Bookmark this on Delicious

Bookmark this page