snipped-for-privacy@gmail.com wrote: Re a certain high-profile someone failing to pay SE taxes and whether he faced an IRS penalty beyond interest:
Statement by Daniel Shaviro, a professor of taxation at New York University School of Law, as quoted in the 2/2/09 NY Times: "Internal Revenue Code section 6662 requires taxpayers to pay a 20 percent penalty for any underpayment of tax that reflects negligence or disregard of rules or regulations. The I.R.S. waived penalties for Mr. Geithner, and there?s no indication that Mr. Daschle will be penalized."
I am not trying to imply anything here. For all I know the IRS rarely imposes penalties unless it is extraordinarily crystal clear there was negligence or disregard of rules or regs. Rather, this post is to get facts out.