The Top 10 Tax Preparer
(and Tax Advisor)
(and how to avoid them!)
Most professionals who give tax advice or prepare tax returns know that great care must be taken regarding what appears (or doesn’t appear) or clients’ returns.
But few tax advisors or preparers know exactly where “the line” is - - and the nature and extent of penalties that may apply to them if that line is crossed.
For example, do you know:
- Who is a preparer?
- Who is not a preparer?
- What is a “non-signing tax return preparer”?
- What is the 5% rule for “non-signing tax return preparers”?
- What’s the bigger concern: the preparer penalty or being reported to the Office of Professional Responsibility?
- What does it mean to have a “reasonable basis” for a position on a return?
- What does it mean to have “substantial authority” for a position on a return?
- Does disclosing a position taken on a return – IRS Form 8275 – increase the risk of an audit?
- Under what circumstances does a tax attorney’s opinion letter give the tax return preparer “reasonable cause”?
- Under what circumstances does reliance on a CPA give the taxpayer “reasonable cause”?
- What’s the relationship between the preparer penalty of Section 6694 and the taxpayer penalty of Section 6662?
- What problem does the Section 7701(o) economic substance doctrine 40% penalty (Section 19774 of the California Revenue & Taxation Code) create for preparers?
- Does the tax return preparer have exposure if the taxpayer is hit with a civil fraud penalty?
- What responsibility does a tax return preparer have to monitor a taxpayer’s activities for “abusive tax shelters” under Section 6700?
- How likely is it that a tax return preparer will be held liable for “aiding and abetting [the] understatement of tax liability” under Section 6701?
- How easy is it to have a taxpayer engage in a “reportable transaction” under Section 6707A?
You need to know and that’s why we’ve asked nationally renowned tax attorney, Bruce Givner, Esq., to present a special, 90-minute presentation entitled, “The Top 10 Preparer (and Advisor) Tax Penalties”.