Preparer penalties

[Black Bart]

I don't know if this is old news or not, but I got a taxletter today saying the recently passed Emergency Economic Stabilization Act of 2008 retroactively (returns prepared after May 25, 2007) lowers the standard for preparer penalties on understatements (other than tax shelters and reportable transactions). It drops from "more likely than not" to "substantial authority" on undisclosed positions and does not apply at all for disclosed positions if there's a "reasonable basis."

[Gene V]

I don't know if this is old news or not, but I got a taxletter today saying the recently passed Emergency Economic Stabilization Act of 2008 retroactively (returns prepared after May 25, 2007) lowers the standard for preparer penalties on understatements (other than tax shelters and reportable transactions). It drops from "more likely than not" to "substantial authority" on undisclosed positions and does not apply at all for disclosed positions if there's a "reasonable basis."

Bart,
Check out this past tread--

http://www.thetaxbook.com/forums/showthread.php?t=9933&highlight=preparer+penalty

[Black Bart]

Okay,

Bart,
Check out this past tread--
http://www.thetaxbook.com/forums/sho...eparer+penalty

Thanks Gene -- I guess it was indeed old news.

[erchess]

Ethics Course

Today I took a six hour ethics course that arrived a couple months ago. I suppose it was accurate when published. It drew on the Standards of the AICPA and Circular 230 to push the Realistic Possibility Standard.

[solomon]

TD 9436 now available.

[erchess]

Will Circular 230 and the Standards of the AiCPA be revised or have they already been revised or what? Also where is TD 9436? I searched for it on the IRS website's search feature and came up blank.

[Gene V]

From CCH

http://www.centerfortaxstudies.com/blog/taxnews/2008/12/16/updated_guidance_concerning_tax_return_p_11

[erchess]

Thank You

Thank you gene, I appreciate the link. I would not have guessed that CCH would let me read it. I use Kleinrock and I am pretty sure only paid subscribers can see what they put out.

I would still like to know whether this changes anything in Circular 230 or the Standards of the AICPA.

[Uncle Sam]

Just wondering...

how many returns got submitted with the Form 8275 and 8275-R that WOULD NOT have, had the more likely than not standard been not been in existence at this time last year.
I guess sometimes it pays to wait and file an extension.

[New York Enrolled Agent]

Will Circular 230 and the Standards of the AiCPA be revised or have they already been revised or what? Also where is TD 9436? I searched for it on the IRS website's search feature and came up blank.

Erchess

TD 9436 will be published in the December 22 edition of the IRB. Pre-release versions are usually issued to commercial organizations. The link Gene gave you contained only a snip of the contents of the TD that CCH published. The actual TD (in Word format) is about 211 pages . On Monday, you can get the full document for some light reading.

[erchess]

Ty Naea

I am reminded of the cat who was so hungry he ate a pound of Limburger Cheese. In fact he was so hungry he then went to the mouse hole and waited with "baited" breath. I shall be like that cat as I await the full TD.

[solomon]

Ancillary information to TD 9436:

http://www.irs.gov/pub/irs-drop/n-09-5.pdf

http://www.irs.gov/pub/irs-drop/rp-09-11.pdf

[solomon]

Also where is TD 9436? I searched for it on the IRS website's search feature and came up blank.

http://taxprof.typepad.com/files/td-9436.pdf