According to the December 9^th Kiplinger Tax Letter, “in the past 5 years, there has been an 800% increase in accuracy penalties assessed on individuals and nearly threefold jump in penalties on businesses.” However, some of the agents assessing these penalties may have been a little over-eager as “almost 25% of the $1 billion in accuracy penalties they levied on individuals in 2010 were later abated by their bosses.”

Stephen Osborne
Accountant
sosborne@mo-cpa.com