For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Failure to deposit withholding tax.

Question

Quizplus · Accepted Answer

Reasonable cause is the appropriate taxpayer defense for failure to deposit withholding tax. This defense is used when the taxpayer can demonstrate that they exercised ordinary business care and prudence but were nevertheless unable to comply with the tax law.

For Each of the Indicated Tax Penalties, Indicate the Appropriate