There are times when Taxpayers will attempt to use the “it is not my fault” argument as a defense relating to IRS penalties. Taxpayers might argue that they relied on guidance from a tax professional or from a tax software that turned out to be incorrect. This type of defense or argument, when factually supportable, could be treated as “reasonable cause” to the satisfaction of IRS, for Taxpayer penalty relief. According to IRS, reasonable cause is based on all the facts and circumstances of a Taxpayer’s situation. IRS will consider reasons which establish that the related Taxpayer used all ordinary care and prudence to meet their Federal tax obligations but were nevertheless unable to do so.
Please see full Publication below for more information.