Because it expects the proposed regulations to make it easier and less costly to obtain professional tax advice for use in making a good-faith determination, the IRS is also considering whether it should eliminate or modify the ability of private foundations to rely on affidavits of foreign grantees.
The proposed regulations are intended to make the good-faith determination process easier for private foundations by broadening the group of tax practitioners who may provide the advice.
6664 establishes special rules regarding the reasonable cause and good-faith determination for any reportable transaction understatement.
192 (1991) (a good-faith misunderstanding of the law or a good-faith belief that one is not violating the law need not be "objectively reasonable if it is to be considered as possibly negating the Government's evidence purporting to show a defendant's awareness of the legal duty at issue").
Regardless of when a taxpayer entered into a transaction, the IRS may consider his or her failure to disclose a reportable transaction or a position that a regulation is invalid as a factor in determining whether the taxpayer has met the reasonable-cause and good-faith
To assist the IRS in promulgating specific guidance on the reasonable-cause exception under sections 6662(e) and 6664(c), TEI suggests below possible safe harbors of good-faith taxpayer conduct.
TEI believes that self-assessment upon discovery of errors is evidence of good-faith compliance that should negate the section 6662(e) penalty.
Those SRTPs review the criteria for rendering advice that reflects professional competence and appropriately serves the client's needs, while assuring that the tax adviser has a good-faith
belief that the position would have a realistic possibility of being sustained administratively or judicially on its merits if challenged.
16, 1995, or put forth a good-faith
effort to obtain an acknowledgment by that date.
According to Notice 94-96, whether an employer has made a reasonable, good-faith
interpretation of Secs.
9, 1994, but must instead meet the reasonable cause and good-faith
exception to the substantial understatement penalty under Sec.
Provide the donor with a good-faith
estimate of the value of goods or services furnished to the donor by the organization.