Imposing Penalties in an IRS Audit

MoneyIn any court or audit proceedings, the IRS must first come forward with evidence showing that it is appropriate to apply some penalty against a taxpayer before the actual court can move forward with administering the penalty. This does not mean that IRS needs to show the court any evidence involving reasonable cause or substantial authority though. It just means that initially, the IRS needs to show the court that it is appropriate given the evidence they have to apply a penalty to the taxpayer.

Appealing IRS Penalty

In the event the taxpayer wishes to appeal the penalty that the IRS is trying to impose on them, they need to do so by themselves and not wait for the IRS to do so. It is the taxpayer responsibility to raise concerns over a penalty they find unfair and not the IRS who is actually imposing the penalty. The IRS is not going to stop imposing a penalty unless the taxpayer brings up evidence to the contrary.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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