The Injunction for Tax Return Preparers

The government often has a myriad of remedies available to it. There are common situations in which the government does not have a consistent and thoughtful process for organizing how and when it will pursue the various remedies. This ad hoc method often results in outcomes that are not tailored to achieve the government’s aims…

The Tax Preparer’s Right to Appeal Return Penalties

The Tax Preparer’s Right To Appeal Return Penalties

The IRS has been focusing on tax return preparer audits. The aim of these audits is to impose penalties on tax return preparers. The IRS typically provides a means for tax preparers to appeal these penalties administratively, but there are cases where it doesn’t provide this opportunity. In those cases, the IRS will assess the…

About Tax Preparer Penalty Audits

About Tax Preparer Penalty Audits

The IRS’s power to regulate tax return preparers was limited by the Loving v. Internal Revenue Service, 742 F.3d 1013 (D.C. Cir. 2014) line of cases. These cases generally limit the IRS’s ability to regulate tax preparer conduct at an administrative level. But the IRS still has a number of tools at its disposal to…

CPA Penalized for Knowledge of Understatement

Can The Irs Get Records From Foreign Corps That Do Business In The U.s.?

Section 6701 imposes a penalty for assisting another person in understating their tax liability. The Section 6701 penalty is not subject to a statute of limitations. The IRS can assess these penalties at any time, even years and decades after the fact. This can result in very large penalty assessments for those who prepare tax…

Return Preparer Liable for Returns She Didn’t Prepare

Tax Litigation When The Administrative Process Failed

The IRS has been increasing its focus on tax return preparers who file false or fraudulent tax returns. Congress recently beefed up the due diligence requirements preparers have to comply with and the penalty amounts have also been increased. But these laws only apply to tax returns the preparer actually prepared. In Tolentino v. United…