Limitation Period For Reckless Conduct of Tax Preparer?

[zeros]

Is there any limitation period for assessing a penalty against an income tax return preparer for willful or reckless conduct that results in an understatement of tax liability?

[S T]

Might depend on the period - (as in year) and what type of tax, infraction, etc not sure,

Federal and State are probably different - so you would need to also check State specific.

Regulations have changed so much over the last year or two, you should probably search IRS for specific to your situation.

Sandy

[OtisMozzetti]

why we have statute of limitation periods

Is there any limitation period for assessing a penalty against an income tax return preparer for willful or reckless conduct that results in an understatement of tax liability?

When there does exist a statute of limitation period, it is done in recognition that it is difficult to keep the records and to obtain supporting evidence further back than the designated amount of time.

Although I don't know of any limitation period other than "forever" for income tax preparer penalties, I believe that the difficulty in obtaining evidence would be considered in deciding whether to assess any penalty.