IRS PENALTY RELIEF
The Internal Revenue Code provides for imposition of an accuracy-related penalty of twenty percent (20%) on underpayment of tax. The taxpayer could be subjected to the accuracy-related penalty for negligently understating their income or over stating their expenses, or for any other substantial understatement of their tax liability. A taxpayer may seek relief from the imposition of an accuracy-related penalty if the taxpayer acted with reasonable cause and in good faith pursuant to I.R.C. Sec. 6664(c)(1).