In this episode of the SALT Shaker Podcast, SALT Counsel Jeremy Gove and Chelsea Marmor dive into the nuanced world of state and local tax penalties.
They explore why penalty abatement standards, such as “reasonable cause” and “ordinary care,” remain ambiguous despite the frequent appearance of penalties in tax assessments. With limited statutory and case law guidance, these standards often leave taxpayers navigating uncertainty.
Their discussion highlights:
- New York’s penalty framework and how it compares to other states
- Practical defenses for abating penalties, including their self-coined “reliance plus” standard
- The importance of contemporaneous documentation in supporting taxpayer positions
Ultimately, Jeremy and Chelsea underscore the highly technical and interpretive nature of penalty imposition and abatement. For a deeper dive into this topic, read their article in Tax Notes State.
This week’s overrated/underrated segment takes a seasonal turn: Is turkey really the star of Thanksgiving?
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