Understanding the New Penalties for Tax Preparers

Training Provided by Lorman Education Services nSignificant changes have been made to the preparer penalty of IRC §6694 since 2007. The standard of care needed to avoid the penalty has been raised, the penalty is greater and the reach of the penalty is broader. In addition, there are various other penalties and rules of conduct you must be aware of and new guidance has been issued in several of these areas in the past year. It is imperative that you understand these penalties and have systems in place to prevent them from being imposed. This teleconference will focus on the preparer penalty, how and when it applies, how the IRS assesses it and tips for avoiding it. Other penalties are also reviewed to provide the fuller context of what you must do to reduce exposure to any penalty or violation of a professional rule of conduct. Examples will be covered throughout the presentation.

Understanding the New Penalties for Tax Preparers Agenda

1. Overview
1. Nature of the Various Penalties Applicable to Preparers
2. Heightened Attention Due to Recent Changes
2. Preparer Penalty of IRC '6694
1. Background and Recent History
2. Basics of the Penalty Calculation
3. Who Is a Preparer?
4. Signing vs. Nonsigning Preparer
5. Standard of Care Necessary to Avoid the Penalty
6. Assessment Process
7. Examples
3. Disclosure and Use of Tax Return Information
1. Penalties Under IRC '6713 and '7216
2. Recent Changes and Guidance
4. Other Penalties
1. Penalties Related to Tax Return Preparation
2. Penalties Not Solely Related to Return Preparation
5. Additional Considerations
1. Recordkeeping
2. Circular 230
3. Professional Rules of Conduct
4. Areas of Extra Scrutiny
5. Exceptions for Reasonable Cause
6. Summary
1. Definitional Differences in Application of Preparer Penalties
2. Tips for Avoiding the Imposition of Penalties
3. Guidance Outlook
7. Questions and Answers

About The Training Provider: Lorman Education Services

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