Preparer Penalties

Proposed Rules Let Tax Preparers Disclose to Taxpayer, Not IRS

The IRS proposes regulations (REG-129243-07) that would allow tax return preparers to generally avoid penalties in situations where they are required to disclose tax positions on behalf of their clients when they do not reach the new higher “more likely than not” standard. The proposed rules allow for something short of disclosure to the IRS regarding positions that do not meet the more likely than not standard, Bryan Skarlatos, partner with Kostelanetz & Fink LLP New York, tells BNA. Tom Ochsenschlager, vice president for taxation at the AICPA, tells BNA his organization is pleased that the IRS is not requiring that a statement about positions that do not meet the more likely than not standard be attached to returns sent to the IRS.

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Stephen Martinez