William, a taxpayer, timely mailed his tax return. However, it was returned for insufficient postage. IRS imposed a penalty. Can William claim waiver of penalty?
A)Yes, William can claim waiver of penalty since it is his first tax return.
B)Yes, William can claim waiver since the failure tofile tax return is due toa reasonable cause.
C)No, William cannot claim waiver since it is a case of willful neglect.
D)No, William cannot claim waiver of penalty as he is a delinquent taxpayer.

Question

Quizplus · Accepted Answer

B) William can claim a waiver of the penalty if he can demonstrate that the failure to file the tax return was due to a reasonable cause and not due to willful neglect. Insufficient postage could be considered a mistake that does not necessarily indicate willful neglect, especially if William can show he acted in good faith.

William, a Taxpayer, Timely Mailed His Tax Return