Dear Tax Professional
You play an important role in the nation’s tax system by helping taxpayers file their returns and meet their tax obligations. To ensure paid tax return preparers are following the law, we want to highlight some potential penalties with respect to preparation of clients’ tax returns. The goal of this campaign entitled “Did You Know” is to make sure you’re not engaging in return preparation practices that may subject you to a preparer penalty. Over the next few weeks you’ll receive emails about five of the most common preparer penalties.
Here is the first: Preparer Penalty Awareness: IRC 6695(a) Failure to Furnish Copy to Taxpayer
Did You Know? Internal Revenue Code, Section 6107(a) requires all paid tax preparers to furnish the taxpayer with a completed copy of their tax return before (or at the same time) the return is presented to the taxpayer for signature. Failure to comply with this law may subject you to an Internal Revenue Code, Section 6695(a) penalty of $50 per occurrence with a maximum assessment of $25,500 in any calendar year. You may provide the taxpayer a copy in any acceptable media, including electronic. It must include all information submitted to the IRS, except it isn’t required to contain your Preparer Tax Identification Number (PTIN).
For more information on Preparer Penalties visit: www.irs.gov/tax-professionals/summary-of-preparer-penalties-under-title-26