Reasonable cause will still abate many penalties despite recent Supreme Court case
Article Abstract:
Taxpayers are at fault (and must pay fines) when their professional accountants or lawyers fail to file tax returns on the deadline. This was determined by the U.S. Supreme Court in the Boyle case. However, other court cases have defined 'reasonable cause' for failure to comply with certain tax preparation and reporting rules, such that noncompliance by the taxpayer may be excused and penalties or fines waived. Among the areas in which taxpayers can be excused for failure to meet regulations are: the filing of information returns, improperly calculated tax deposits, understated tax liabilities, filing of some tax statements, poor preparation penalties, assessable tax penalties, and filing of partnership tax reports. Lists of items that constitute probable cause are provided for many of these categories.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1985
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Damages from age discrimination suit are excludable
Article Abstract:
The Tax Court has finally decided that a taxpayer's gross income does not include damages awarded for back pay as a result of the settlement of age discrimination suits. This decision is in accordance with several circuit court decisions which established that such awards are non-taxable based on Section 104(a)(2). This rule, however, only applies to compensatory damages. Punitive damages are included in the employee's gross income and are, therefore, taxable.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1991
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