June 2018 JD Supra

There are times when Taxpayers will attempt to use the “it is not my fault” argument as a defense relating to IRS penalties. Taxpayers might argue that they relied on guidance from a tax professional or from a tax software that turned out to be incorrect. This type of defense or argument, when factually supportable, could be treated as “reasonable cause” to the satisfaction of IRS, for Taxpayer penalty relief.