“Geithner Defense” Rejected By Tax Court

This past Monday, the Tax Court held that blaming TurboTax for errors on a return did not excuse the taxpayer from penalties. Lam v. Commissioner, T.C. Memo. 2010-82 (Apr. 19, 2010).

Misuse of TurboTax, even if unintentional or accidental, is not a defense to the Internal Revenue Service imposing penalties. You must still show a reasonable cause for the underpayment of taxes to avoid penalties.

Need help with finding an accountant to prepare your tax return so you can avoid penalties if you are nervous about using software to prepare taxes, call Mitchell A. Port at 310.559.5259 for a referral. If you want your tax problem fixed, call Mitchell A. Port.