With a goal of making IRS penalties easier for taxpayers to understand, the IRS has issued proposed regs that examine how tax penalties are applied. According to the tax agency, the IRS seeks a process that it can administer with nationwide uniformity. Generally, the IRS can’t assess a penalty against a taxpayer unless the assessment is first approved in writing by the immediate supervisor of the person setting the penalty, or by a higher-level official. This doesn’t apply to added tax under certain tax code sections or to automatic penalties. The proposed regs would also address other issues such as the timing of various penalties. The IRS is requesting comments until July 10.
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