Are we worrying too much about Circular 230 penalties?

[Zee]

I'm wondering how often the IRS has assessed preparer penalties?

Obviously, Circular 230 makes it seem like all preparers have a high risk if their client is audited and an item is disallowed or the IRS wins a dispute.

My guess is seasoned, honest preparers (like those on this BBS) have only minimal risk and the IRS will focus on the bozos in our business.

Are we worrying too much about nothing? Or, is the IRS actually going to add a preparer penalty for a simple mistake on things like second job mileage?

[BOB W]

I am proceeding as if they will, at least for the next couple of years while the situation is hot.

[Roberts]

Jmo

JMHO. They need us to do our jobs and as long as errors are honest mistakes and do not constitute a pattern or an attempt to defraud them, they will want to keep us in business. Without tax professionals doing the bulk of the returns, their jobs would quickly become a living hell.

[JG EA]

I am not worried since I would never take a position if I felt there was only a 50/50 chance that it is a good position. I do worry though about an audit where the auditor says something is now not allowed (although I liked the deduction) and therefore had a zero chance in hindsight.

[SueBaby]

I am proceeding as if they will, at least for the nex couple of year while the situation is hot.

This year I have never seen the IRS so HOT that is what I am worried about the dates I forgot to change on those amended returns I mailed and had different dates on all of them. I just forgot to change the date on my software when they came and when I printed them out. So what now? Do I get into trouble because of different dates on all?

[JG EA]

Find out.

You can call the IRS with TP present or with POA and ask about this. Tell them of the mistake and if it will make a difference. Call the TPH (I don't have the number in front of me but others have posted it before). Sometimes they can just put a note in the file and it will resolve the problem. Or they will tell you what further action you should take.

[SueBaby]

You can call the IRS with TP present or with POA and ask about this. Tell them of the mistake and if it will make a difference. Call the TPH (I don't have the number in front of me but others have posted it before). Sometimes they can just put a note in the file and it will resolve the problem. Or they will tell you what further action you should take.

All of them have mailed it so I have to call the IRS Monday on it. If this is wrong is it a penalty on me or what? Never done this before BUT what else is new.

[JG EA]

You didn't do something bad, just a mistake. I don't see how signature dates could make a $ difference.

[SueBaby]

You didn't do something bad, just a mistake. I don't see how signature dates could make a $ difference.

I hope that is all there is too it. Maybe they will look at the paper that was left off not the dates mix up. Thanks

[bertrans]

You didn't do something bad, just a mistake. I don't see how signature dates could make a $ difference.

It doesn't sound af if this would be the case here, but if the BACKdating influences whether or not a particular deduction is allowable, might make a $ difference.

[SueBaby]

It doesn't sound af if this would be the case here, but if the BACKdating influences whether or not a particular deduction is allowable, might make a $ difference.

I called the IRS about this because of worry and they or she said that it did not matter that they look on the things that was left off and they stamp on it the day it was gotten. But that was only that one person that told me that. The amended returns haven't hit yet---possible this summer.