Congress and the IRS have been focusing on regulating tax and financial services. Although the problems that are being addressed were not caused by CPAs, practitioners may be swept up in the solution.
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TOPICS / PROCEDURE
Representations & Examinations
Tax Preparer Penalties: Who Is a Preparer?
Recent changes to the tax preparer penalty statute expose signing and nonsigning tax preparers of income, estate, gift, and certain information returns to higher monetary penalties and make it vital that they understand who is a preparer under the new rules.
Two Courts Address Tax Shelter Exception to Tax Practitioner Privilege
The Tax Court and the Seventh Circuit recently decided cases dealing with the tax practitioner/client privilege under Sec. 7525.
IRS Announces Procedures for Tax Return Preparer Penalties
The IRS recently issued internal memoranda setting forth procedures for tax return preparer penalties in taxpayer examinations.
New Tax Preparer Rules for Disclosure and Use of Return Information
The IRS released final regulations under Sec. 7216, providing guidance for tax return preparers about the disclosure or use of tax return information.
IRS Issues Final Regulations on Sec. 6694 Tax Return Preparer Penalties
The IRS issued final regulations implementing the changes to the Sec. 6694 tax return preparer penalties.
New Regs. Govern Overseas Disclosure and Use of Taxpayer Information
The IRS issued final regulations under Sec. 7216 to update the existing rules to address current tax industry practices, such as electronic preparation and filing, expanded tax and nontax service offerings, and resource sharing across national borders.
The Tax Return Preparer Standard: Policy Developments
The tax return preparer standard set forth in Sec. 6694 has been subject to a series of revisions and refinements.
Guidance on Sec. 6694 Preparer Penalty Issued
The IRS has issued guidance on the implementation of the Sec. 6694 preparer penalty and has identified returns that can make preparers subject to both the Sec. 6694 and Sec. 6695 penalties.
Tax Preparer and Taxpayer Reporting Standards Equalized
A provision in the 2008 Tax Extenders and AMT Relief Act sets the standard of conduct for preparers to avoid the penalty for understatement of tax due to an undisclosed return position at “substantial authority,” the same standard applied to taxpayers. The controversial “more likely than not” standard has been retroactively repealed.
TIGTA Test Uncovers Significant Errors in Returns Prepared by Unenrolled, Unlicensed Preparers
During February and March of 2008, TIGTA auditors posing as taxpayers paid to have individual tax returns prepared by 28 unenrolled, unlicensed tax preparers. TIGTA found significant errors in most of the returns prepared in the test.
Disclosure Under the Preparer Penalty Prop. Regs.
Editor: Lorin D. Luchs, CPA, J.D., LL.M. On June 16, 2008, the IRS issued proposed regulations (REG-129243-07) on tax return preparer penalty standards that it hopes to have finalized by the end of the year. The proposed regulations amend existing regulations to take into account the provisions in the Small
An Analysis of the New Preparer Penalty Proposed Regulations
This article analyzes the proposed regulations on the new Sec. 6694 preparer penalty provisions that were enacted as part of the Small Business and Work Opportunity Tax Act of 2007.
Temp. Regs. Give Guidance on Return Preparer Information Disclosures
The Service released final and temporary regulations that govern the disclosure of a taxpayer’s Social Security number to overseas return preparers (T.D. 9409; REG-121698–08). Under the temporary regulations, such disclosure will be permitted in limited cases, with the taxpayer’s consent. Return preparers are generally forbidden to disclose a taxpayer’s Social
Proposed Preparer Penalty Regs. Released
Proposed regulations implement changes to the return preparer penalties in Secs. 6694 and 6695 and related provisions.
IRS Provides Guidance on Return Preparer Penalties
The IRS has provided guidance (Notice 2008-46) on the implementation of the return preparer penalties under Sec. 6694.
Sec. 6694 Tax Return Reporting Standards for Preparers
The Sec. 6694 tax return reporting standards applicable to tax return preparers were increased to “more likely than not” for undisclosed nontax-shelter items.
New Rules for Disclosure and Use of Tax Return Information by Tax Return Preparers
Newly finalized regulations should prompt all return preparers to evaluate their processes to ensure that they conform to the disclosure requirements of Sec. 7216.
IRS Issues Rules on New Preparer Penalties
Notice 2008-13 implements the expanded tax return preparer penalties and increased standards of return preparer conduct enacted by the Small Business and Work Opportunity Tax Act of 2007.
The Ongoing Sec. 67(e) Controversy and the New Preparer Penalties
This item discusses how the 2% floor affects a trust’s regular tax and alternative minimum tax (AMT), the effect of the recent Supreme Court decision in Knight on the continuing controversy, and the efficacy of the proposed regulations in the wake of the Knight decision.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
