June 17, 2019 - Douglas Myser

Tax court case of untimely filed return. This blog has avoided posts in the past, regarding Tax Court issues, as we were not representing either individuals or business owners in Tax Court, so found it unnecessary to educate those who read the blog of issues that might interest them. That has changed. We now offer Tax Court Representation in all 50 States. We can Represent clients in their jurisdiction or ours and if you have a difficult Revenue Officer, you may ask us which option is best. We have dealt with difficult situations many times and know how to steer clear of them. Tax court case of untimely filed return.

The Fifth Circuit held that a district court improperly granted summary judgment in favor of the IRS when the lower court held the taxpayers reliance on an agent to electronically file their tax return was not reasonable cause to avoid the late filing penalty of Sec. 6651 (a) (1). According to the court, whether the paid preparer was negligent was an issue of material fact that should have been determined before deciding the issue; therefore, the court vacated the decision and remanded the case to the lower court.

Christopher and Priscilla Haynes hired a CPA to prepare their 2010 income tax returns, who filed it electronically on October 17, 2011, the last day of the automatic 6 month extension period, and on the same day informed the couple of the filing. The IRS rejected the return because the Priscilla's Social Security number appeared on the wrong line. The Hayneses immediately filed a paper return and were assessed a penalty.  Section 6651 (a) (1) permits the IRS to assess a penalty for a taxpayer's failure to file a timely tax return unless the failure is due to reasonable cause and not due to willful neglect. TO demonstrate a lack of willful neglect.

The Fifth Circuit vacated the lower court's decision and remanded the case back to it.  Tax court case of untimely filed return. If you don't need Tax Court services, but instead want to determine every option in the IRS Code for Tax Relief options, we are the Fourth Oldest Tax Resolution Services Company in America. Call to find out if you qualify for the IRS Fresh Start Program, or any option not in that program.