The Week of April 26 – April 30, 2021 - Plentywood Drug, Inc. | April 26, 2021 | Holmes| Dkt. No. 17753-16 - Short Summary: The Tax Court was asked to.
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A recent Tax Court decision addresses the “reasonable cause” standard a frequent issue in the IRS-penalty context. As the case demonstrates, whether a taxpayer acted with reasonable cause and in good faith is determined on a case-by-case basis.
Woll highlights the fact that a taxpayer who has an advanced degree, such as an attorney, will likely have more difficulty demonstrating reasonable cause. Based on the
Woll decision, reliance on a computer program or failure to read a tax form, such as a Form 1099-R, is not sufficient without more to prove reasonable cause.