Insights
Jim Malone Discusses Wells Fargo Ruling's Impact on Tax Professionals with Bloomberg BNA's Daily Tax Report
In a May 30, 2017 article, "Wells Fargo Penalty Makes Waves for Tax Professionals," in Bloomberg BNA's Daily Tax Report, James R. Malone, Jr. provided his insight on the ruling in Wells Fargo & Co. v United States and why tax professionals are concerned with the judge's "narrow interpretation of a penalty exception claimed by Wells Fargo," in the case.
In the article, Mr. Malone notes that:
"...if the decision gets traction on how to argue the reasonable basis exception to the negligence penalty, a taxpayer will have to show how it determined that its position was reasonable.
Maybe clients have to be shown the regulations. Display eyeball reliance or open up the tax opinion. What’s at issue is whether they want to plead reliance on the opinion, which opens up all your discussions with your tax adviser."