Preparer penalties, signatures and records
SEE 3 Chapter 9 · IRS outline 1D1, 1D3, 1D4, 1D5, 1D6
Circular 230 is enforced by OPR. The Internal Revenue Code has its own enforcement for anyone paid to prepare returns, licensed or not: preparer penalties. Theo is now signing returns, so Nadia walks him through the Code rules that come with that signature: who counts as a preparer, the §6694 understatement penalties, the §6695 paperwork penalties, aiding and abetting, and how a preparer fights back when the IRS proposes one.
In this chapter
- Who is a tax return preparer
- Section 6694(a): unreasonable positions
- Section 6694(b): willful or reckless conduct
- Section 6695: copies, signatures, PTINs and records
- Aiding and abetting, promoters, disclosure and injunctions
- Assessing and appealing a preparer penalty
This chapter has 6 lessons and 50 practice MCQs with explanations, plus flashcards and a recall sheet.
What this chapter covers
- Who is a preparer
- section 6694
- section 6695 copies, signatures, PTINs and lists
- section 6060 records
- aiding and abetting
- assessment and appeal of preparer penalties
Chapter 8: Frivolous submissions, fraud and taxpayer penalties · Chapter 10: Due diligence for refundable credits and head of household