Mitch's Form 1040, U.S. Individual Income Tax Return, for the taxable year 2017 was due on April 15, 2018. On April 3, 2018, Mitch was in a serious accident and was in the coma until July 2, 2018. Mitch made a miraculous recovery and was discharged from the hospital in perfect health on August 6, 2018. On October 5, 2018, the IRS received Mitch’s 2017 Form 1040. On the Form 1040, Mitch reported a tax liability of $60,000 and $15,000 of estimated tax payments he made for 2017. Mitch subsequently received a letter from the IRS stating he failed to timely file his 2017 Form 1040 and, therefore, as of October 30, 2018 he was liable for the following penalties: Failure to file penalty (as of October 30, 2018) $13,500 Failure to pay amount on return (as of October 30, 2018) $ 1,350.

Question: as of October 30, 2018, what defenses, if any, does Mitch have to eliminate or reduce the $13,500 penalty under I.R.C. § 6651(a)(1) for the failure to timely file his 2017 return?

A. Mitch's only possible defense that is failure to timely file his 2017 was due to reasonable cause and not due to willful neglect.

B. Mitch has no defense.

C. In addition to a potential defense that his failure to timely file his 2017 was due to reasonable cause and not due to willful neglect, Mitch can correctly argue that that the IRS incorrectly computed the I.R.C. § 6651(a)(1) penalty.

D. In addition to interposing the two defenses in answer 3 (directly above), Mitch should also argue that the no stacking rule applies.

E. Mitch has an equity defense. Mitch should seek a Taxpayer Assistance Order from the Taxpayer Advocate because the IRS letters demonstrate a lack of compassion for taxpayers.