Substantial tax understatement penalty


#1

I have a client who was assessed a substantial tax understatement penalty of 20% for Social Security that was left off his return for 2016. It was an oversight on my part (CPA). Is there any remedy to reduce of eliminate the penalty caused by my error?


#2

Hey Steve,
I went back through some of my training material and found some good slides regarding understatement penalty. I would look to use some of these references (IRC, IRM, court cases, etc) in writing up a reasonable cause abatement request. Here is the info:





Lots to read, but I hope it helps!
Jeff


#3

Thank you for responding Jeff. I will give that a try!