Tax Return Preparer Penalties - Guidance Update

The IRS has issued the following updated guidance on tax return preparer penalties:

• Notice 2009-05.  Provides guidance regarding implementation of the tax return prepare penalty under section 6694(a).  The Service is also requesting comments on the interim guidelines in this notice.    
  
• Revenue Procedure 2009-11. Describes the returns and claims for refund that are subject to the penalties for understatement of a taxpayer's liability by a tax return preparer under section 6694 and for the tax return preparer's failure to sign the return or claim for refund under section 6694(b).
  
• TD 9436.    Final regulations under IRC Sections 6695 and 6695A. These final regulations are applicable to returns and claims for refund filed (and advice given) after December 31, 2008.
  

Notice 2009-5 and Revenue Procedure 2009-11 will be published in Internal Revenue Bulletin 2009-3 on January 21, 2009. 

See also Tax Return Preparer Penalties, by James E. McNair, Gregory J. Rupert, and Cynthia L. Gausvik, Eric C. Wang and William A. MacDonald.

Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.