A recent Accounting Today article
provides helpful tips to assist tax preparers in completing tax returns error-free. The article highlights the importance of obtaining a Preparer Tax Identification Number (PTIN) and accuracy-related penalties under § 6662 of the IRC that apply to taxpayers. A new addition to this section enforces a 40% penalty on any portion of an underpayment attributable to an undisclosed transaction that lacks economic substance in § 6662(b)(6). The author also explains penalties applied to tax preparers in § 6694, clients' reporting of foreign assets, the requirement to sign every prepared return, and information disclsoure requirements.
See Patricia Dampf, "Steering through the Busy Tax Season Without Getting Pulled Over
" www.accountingtoday.com (Mar. 29, 2012).
Posted by Theresa Androff, Associate Editor, Wealth Strategies Journal