Tax Return Preparer Penalties

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As a tax return preparer, you know that the IRS takes your job seriously.  But you may not be aware of just how serious.  The IRS can level penalties against you for a huge number of infractions of professional preparer conduct.  The IRS can open a Program Action Case against you if it sees a pattern of inappropriate services that appear pervasive and extend to multiple taxpayers.  For instance, if the IRS suspects that you repeatedly understated the amount of taxes owed by taxpayers, made deliberate and willful attempts to hide the true amount owed by taxpayers,  or engaged in reckless and intentional disregard of IRS rules and regulations, the IRS will investigate your behavior. In some cases, you may face penalties, or you may be censured, including suspension or disbarment, by the IRS Office of Professional Responsibility. You may even incur criminal charges.

Any one of these mistakes – and others – can trigger an IRS examination of your history as a tax return preparer:

  • Breach of client confidentiality.
  • Failure to sign a return as the preparer.
  • Inadequate record retention, including client contact information and copies of the completed returns.
  • Failure to furnish a taxpayer ID number.
  • Failure to engage in service with due diligence to accurate reporting.
  • And aiding and abetting the understatement of taxes owed.

If you are facing an IRS inquiry or audit concerning your tax preparation services, consulting with us can help save your career.  Although you are most likely very well versed in reporting requirements, you may not know all your rights and responsibilities to the IRS as a tax return preparer.

As a tax boutique, Law Offices of Christy Lee, P.C., offers a full array of services for the tax return preparer.  We will advise you about your options in a civil audit, appear for you at any hearings, and defend you if you face criminal charges for unprofessional and unethical return preparation.  We will also confer with you concerning the best ways to avoid triggering civil audits in the future.

Why Should You Contact Law Offices of Christy Lee, P.C.?

When facing IRS Audits & Appeals, it's reassuring to have a tax professional on your side that understands the complexities of the law.

As a general rule, taxpayers who seek our legal advice concerning their tax obligations early in the IRS audit achieve substantially more favorable results than those who face such challenges alone.

We ensure that you don't misinterpret questions from the auditors and inadvertently provide information that could be harmful to your case.

You can have supreme confidence in our ability to establish an effective defense for your case due to our collective knowledge regarding the intricacies of tax law.

Tax law routinely updates and changes. For that reason, the team at Christy Lee Law is always up to speed on current developments so that we may find and utilize key advantages of the law.

We mark and utilize every benefit afforded to business owners as it relates to the Internal Revenue Code. We stand by that commitment to our clients.

Disclaimer: Material contained in this website is intended for informational purposes only and should not be interpreted as legal advice. The content does not constitute an attorney-client relationship between the user and Law Offices of Christy Lee, P.C., and users should not act on the content without seeking legal counsel in their own jurisdictions.