IRS Says Brain Injury Not Reasonable Cause for Failure to File, Tax Court Disagrees

IRS penalties are  supposed to be assessed against a taxpayer only when his non-compliance is due to willful neglect rather than reasonable cause. Serious, debilitating health problems are almost always considered to be reasonable cause. Joe Kristan found a…

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Offshore Amnesty Reminder: Deadline August 31, 2011

It’s a crime not to report your foreign earnings on your federal income tax returns. It is likewise illegal not to report your foreign bank account holdings to the Treasury Deparment. But there is good news:…

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Omitted Income, Accuracy Related Penalty and Reasonable Cause

Russ Fox over at Taxable Talk says that the Tax Court upheld an accuracy related penalty against a taxpayer even though the deficiency arose because his tax preparer failed to report a 1099 on his tax return: Everyone is…

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IRS Audits: Why You Shouldn’t Represent Yourself

The IRS has the legal right to audit any tax return it so chooses for any reason it chooses. The threat of an audit is what makes most taxpayers take seriously their obligation to comply…

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IRS is Auditing More Taxpayers; Hire a Reputable Preparer

The Associated Press reports that the IRS is intensifying and expanding its tax return audit program: The IRS is making it a bit riskier to cheat on your taxes. The tax agency increased the number of returns it…

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