Preparer Penalties: Negligence, Substantial Understatement, and IRC §6060
Free IRS Enrolled Agent SEE Part 3 (Representation, Practices and Procedures) lesson in Practices and Procedures. 22 min read, ~3,281 words.
§6694(a) unreasonable position: greater of \$1,000 or 50% of income derived. §6694(b) willful or reckless: greater of \$5,000 or 75% of income derived (offset by any §6694(a) already imposed). §6695 paperwork penalties (2025): \$60 per failure, \$31,500 annual cap each, for failing to furnish a copy, sign, supply PTIN, retain...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
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