| Title: |
IRS Issues Guidance on New Preparer Penalty Rules |
| Prerequisite: |
Overview of Federal Income Taxation or comparable knowledge/experience |
| Advance Preparation: |
None |
| Knowledge: |
Intermediate |
| Subject Matter Area: |
Taxation |
| Date of Publication: |
February 2008 |
| Copyright: |
© 2008 by Bisk Education, Inc. All rights reserved. |
| Recommended CPE Credits: |
1 QAS/Registry (based on 50-minute hour) |
| Expiration Date: |
One year from date of receipt to complete program and submit quizzer to obtain credit |
| Passing Grade for Quizzer: |
70 percent or higher |
In what situations have preparers applied the more-likely-than-not reliance standard before? What constitutes substantial authority? What should a practitioner do when a tax position has a reasonable basis, but not substantial authority? What are the consequences for a client who removes a Form 8275 disclosure statement from a return? How should a practitioner document advising a client of the disclosure requirements? Is that documentation protected by privilege? What changes in a practitioner's engagement letter might be appropriate?
Note: Reporting of CPE credit to a CPA's state board is the responsibility of the CPA. Subscribers to CPE Network Tax may not receive duplicate credit for this material, which previously aired in the February 2008 edition of that program.
This text is divided into three chapters:
Chapter 1 features Lynn Nichols, Ed Zollars and Bill Raby as they review the guidance in Notices 2008-11, 2008-12, and 2008-13, and explain what practitioners need to know to comply with the more-likely-than-not reliance standard. The discussion covers IRS guidance to resolve the conflict between the reliance standard for practitioners and their clients, the importance of documenting discussions with clients about required disclosures, and the levels of authority for various types of cases, regulations, rulings, learned treatises and practice aids.
Chapter 2 contains contains supplemental materials, including:
- Notice 2008-11
- Notice 2008-12
- Notice 2008-13
Chapter 3 contains review problems that help illustrate the topics covered in Chapters 1 and 2.
Edward K. Zollars, CPA, is a partner in the firm of Thomas & Zollars, Ltd. in Phoenix, Arizona. A former member of the AICPA Tax Section Tax Technology Committee, Mr. Zollars specializes in individual and business tax planning, as well as tax technology. He has been an expert speaker at numerous AICPA Tax Section meetings and has made presentations at the AICPA National Conference on Federal Taxes.
John L. Norman Jr., JD, is an attorney in private practice in Washington, D.C., where he specializes in closely held business organizations, as well as estate and financial planning. He is the former National Director of Taxation for the accounting firm Pannell Kerr Forster, and the Director of Tax Policy for Potomac Electric Power Company. He is presently a senior faculty member at the Keller Graduate School of Management, and previously taught at William and Mary and George Washington University.
E. Lynn Nichols, CPA, he is the founder of Mares Nichols CPE Inc., a developer of continuing education seminars for CPAs. He is a highly rated tax conference speaker and serves as an advisor to a number of local CPA firms on tax practice quality control issues, complex tax matters, and tax controversies. He serves his clients from an office in New Castle, Pennsylvania.