When a taxpayer shows that failure to file a tax return or to pay a tax is due to reasonable cause, no penalty is assessed.While the concept of reasonable cause is not clearly defined by the IRS, it is probable that the IRS and the courts would not allow which one of the following situations?
A)Serious illness of the taxpayer
B)Death of the taxpayer
C)Natural disaster
D)Reliance on an accountant to file the return
E)Unavoidable destruction of the taxpayer's records

Question

Quizplus · Accepted Answer

Reliance on an accountant to file the return is not considered reasonable cause because the taxpayer is ultimately responsible for ensuring their tax returns are filed and taxes are paid properly. The IRS expects taxpayers to ensure the accuracy of their tax returns, even when relying on a professional. The other options listed (serious illness of the taxpayer, death of the taxpayer, natural disaster, and unavoidable destruction of the taxpayer's records) may be considered reasonable cause for failure to file or pay taxes.

When a Taxpayer Shows That Failure to File a Tax