Penalties: Reconsidering the 'Reliance on Professional' Defense to Delinquency Penalties in the Age of E-Filing

Abstract

Following the Supreme Court’s decision in Boyle v. United States, courts traditionally have held that a taxpayer cannot delegate the responsibility to file a tax return to another person and, therefore, cannot avoid a late filing penalty if the other person fails to file on time. However, the IRS now encourages taxpayers to e-file their tax return through e-filing professionals. Under these circumstances, the IRS and courts must re-evaluate whether and when a taxpayer should be penalized if a professional fails to e-file a return on time.

Keywords: penalties, delinquency, late filing, e-filing, Boyle