Tax Return Penalties West Lafayette IN - West Lafayette IN, legal attorney, West Lafayette IN legal help, West Lafayette IN legal advice, West Lafayette IN penalties, West Lafayette IN negligence, West Lafayette IN disregard of rules and regulations

Local Companies

H & R Block
(765) 463-0089
1040A Sagamore Pkwy W
Lafayette, IN

Sullivan Harold P CPA PC
(219) 763-1711
6356 Central Ave
Portage, IN

Booth Libbie
(765) 364-1200
220 Hamilton St
Crawfordsville, IN

H & R Block
(765) 483-0459
2440 N Lebanon St
Lebanon, IN

H & R Block
(317) 916-9650
1110 Churchman Ave
Indianapolis, IN

Penner Tax Service
(574) 533-8228
15603 State Road 4
Goshen, IN

Warrick Tax Service
(765) 762-6285
301 S Perry St
Attica, IN

Heffelmire Tax Service
(317) 770-0269
2388 Sheridan Rd
Noblesville, IN

Armstrong Mary C Acctnt
(317) 547-8621
5553 E 34th St
Indianapolis, IN

Block H & R Co
(317) 738-3324
209 W Jefferson St
Franklin, IN

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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

Elam Income. Tax Service

(773) 264-5339
11539 S Throop St
Chicago, IL