SB/SE Agent Seeks Exception for Small Preparers Under Preparer Penalty Guidance
JAN. 13, 2009
SB/SE Agent Seeks Exception for Small Preparers Under Preparer Penalty Guidance
DOCUMENT ATTRIBUTES
- AuthorsNess, John
- Institutional AuthorsIRS Small Business/Self-Employed Division
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2009-1112
- Tax Analysts Electronic Citation2009 TNT 13-25
Johnson Regina
From: Ness John F [John.F.Ness@irs.gov]
Sent: Tuesday, January 13, 2009 1:33 PM
To: Notice Comments
Subject: Notice 2009-5
We need a small preparer penalty exception to IRC 6694(a). Keep the $250 penalty available for preparers who prepare less than 100 returns.
Revenue Agents in central Indiana often run into small time preparers who are sloppy or no longer keep up with tax law. By and large, they depend on their tax prep software to keep them out of trouble.
In a return preparer case I am working right now, a 6694(a) penalty for $1,000 would be 9% of their net income.
I often am perfectly willing to assess a $250 penalty on a small time, small town preparer to let them know that they are involved in serious business. In some cases, $250 is twice or three times higher than what they charged to prepare the original return.
I have a lot higher threshold to assess the $1,000 penalty.
John Ness
Revenue Agent
SBSE
(317)883-8427
DOCUMENT ATTRIBUTES
- AuthorsNess, John
- Institutional AuthorsIRS Small Business/Self-Employed Division
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2009-1112
- Tax Analysts Electronic Citation2009 TNT 13-25