In a summary opinion, the Tax Court upheld an accuracy-related penalty against a taxpayer who claimed to have submitted information concerning cancellation of indebtedness income to his accountant, who then failed to include it on his return. The Tax Court found nothing in the record, other than the taxpayer’s self-serving testimony, to indicate reasonable cause and good faith through reliance on a tax professional.
See Djoshabeh v. Commissioner, T.C. Summ. Op. 2014-58, Docket No. 26533-12S (June 23, 2014)
With thanks to “Penalty Upheld Against Taxpayer Who Omitted Canceled Debt Income,” 2014 TNT 121-11, Tax Analysts (June 24, 2014)
Posted by David Staggs, Associate Editor, Wealth Strategies Journal