Taxpayer qualified for reasonable cause to avoid payment of the 941 quarterly payroll taxes withheld from his employee's wages. The Taxpayer was closing down his law firm due to his declining health, so he assigned filing and paying his employees' payroll taxes to his assistant. She did not pay or file the returns. The court concluded that due to his declining health and inability to supervise his assistant, he was not willful nor negligent because once he found out that his assistant had not complied with the law, he promptly filed and paid the tax. See Tracy v. Commissioner of Internal Revenue, 2023 TC Summary Opinion 20 -Tax Court (2023)
- Kenneth D. Eichner, P.C.
