Daily Tax Update - December 15, 2008

IRS ISSUES ADDITIONAL GUIDANCE RELATED TO PREPARER PENALTIES: Today, the IRS issued additional guidance related to the final rules (T.D. 9436) on tax return preparer penalties.

  • Notice 2009-5 provides guidance regarding implementation of the tax return prepare penalty under tax code Section 6694(a). The service is also requesting comments on the interim guidelines in this notice.
  • Rev. Proc. 2009-11 describes the returns and claims for refund that are subject to the penalties for understatement of a taxpayer's liability by a tax return preparer under Section 6694 and for the tax return preparer's failure to sign the return or claim for refund under Section 6694(b).
  • Additional information can be accessed via:

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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