Tag: accuracy related penalty section 6662
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IRC Section 6662 Penalties: Why Reasonable Cause Might Be Your Best Defense
The accuracy-related penalty under section 6662 is not automatic. The reasonable cause and good faith exception under section 6664(c) can remove it, but the taxpayer must prove it with evidence. This piece explains what the standard requires, why hiring a preparer alone does not satisfy it, and why documentation timing matters.
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Qualified Amended Returns Explained: A Legal Way to Get Ahead of an IRS Accuracy-Related Penalty
A qualified amended return can reduce or eliminate the accuracy-related penalty on an error discovered after filing, but only if filed before the IRS makes contact about the return. This piece explains the underpayment calculation, the events that close the window, and how the rule differs for fraudulent positions and disclosure-only filings.
